INDONESIA – FOCUS ON HUMAN RESOURCES AND INFRASTRUCTURE DEVELOPMENTS

There is no developed country that does not have infrastructure, and there is also no developed country that does not have qualified human resources. Moreover, in order to face global competition and to support Indonesia as the fourth-largest population in the world, human resources play a crucial role. President Joko Widodo hence stated that in 2019–2024, Indonesia must focus on improving its human resources. The development of human resources includes the improvement of vocational schools, vocational training, polytechnics, partnerships with industries and upgrading practical skills of manpower.

Having practical skills will enable Indonesian people to become high-quality, higher paid workers in a number of 21st century economic sectors such as tourism, lifestyle, e-commerce, technology, telecommunications, as well as services like healthcare and education. Thomas Lembong, Chairman of Indonesia Investment Coordinating Board, states, “We believe that the rise of social media and the digital economy leads to a tremendous shift of manner consumption. The consumption is shifting away from buying goods to buying experiences, and from offline to online.” In recent years, the digital economy was estimated to make up 15–20 per cent of total foreign direct investment (FDI) to Indonesia, making it one of the largest FDI contributors.

Although human resources development will become the Indonesian government’s focus in the next five years, infrastructure development will not be halted. In fact, the continuation of infrastructure development will be highly needed to support the enhancement of other prioritised sectors such as the digital economy and tourism.