Structural Problems Of Indonesia's Barriers In Forming Demographic Bonuses Into Workers Ready For The Future

JAKARTA - Indonesia's digital economy has the largest value in Southeast Asia, with an estimated US$77 billion in 2022, or an increase of 22 percent from last year. However, the widespread digital equality gap is still a challenge for Indonesia and affects its ambition to achieve Indonesia's 2045 vision.

Indonesia has good demographic bonus potential in the years to come. However, according to a study from Kearney, Indonesia must address structural problems in education and human resource development. Digitalization initiatives across the industrial chain have begun although still limited, thus hampering the working age population from becoming a productive human resource with the main skills to develop in the world of work in the future.

Indonesia accounts for 40 percent of Southeast Asia's digital economy, but most of Indonesia's population is still not equipped with basic ICT skills needed to survive in today's technology-oriented society. According to an analytical study of 228 million job vacancies recently in the United States, Artificial Intelligence (AI)/ Machine Learning (ML) expertise, Cloud computing, Product management, and Social Media are the four most needed skills for the ever-evolved jobs. Researchers have found that at least one of the skills criteria is a condition displayed on one of the eight job vacancies in the US, "explained Shirley Santoso, Partner and President of Kearney, Tuesday 30 May. Indonesia must immediately develop educational infrastructure into a powerful digital ecosystem and involve the central government, private companies, BUMN, and technology actors in the field of education. Sufficient funding from the government can support the development of the education ecosystem digitally. The burden of government spending can be reduced by designing funding regulations to attract its sector," said Rohit Sethi, Principal of Kearney.Seeing neighboring countries, such as China and Singapore, their education systems have adapted to create future labor. China implements policies to promote universal access that generate a 50 percent increase in school registration in 8 years, such as playing/game as a major pedagogy system at pre-school times. They also create a 1+x model for vocational education that allows vocational and university agencies to offer a wide range of certified expertise.

Then, Singapore improved the Technical Education Institute system to develop technology skills by strengthening its partnership. At the university level, China brought in international students, faculty, and partners to improve diplomacy and knowledge. Singapore focuses on learning based on practice, industry-specific programs, autonomous universities, technology-based and innovation-based devices, as well as flexible pedagogists.

"In addition to developing future labor, Indonesia also needs to provide ICT training resources to serve people who are less high in education, the elderly population, and women," said Rohit.

For example, in Singapore, the Ministry of Education, Culture, and Sciences makes A Media Literacy Council as a digital literacy platform. This platform is filled with a list of resources that cover a wide range of materials, ranging from videos to articles, speeches, and many others. In addition, they also partner with more than ten organizations to support citizens in dealing with issues that occur in cyberspace such as cyber bullying, online fraud, and so on," he added., "Even though Indonesia currently does not have a comprehensive program to prepare the skills needed by future workers, the Ministry of Communication and Informatics (Kemenkominfo) has taken proactive steps to address this problem by forming a "Digital Talent Scholarship" platform. This initiative aims to promote the development of digital skills and bridge the gap in digital skills in Indonesia, focusing on developing talents that can contribute to the country's digital economy. "The Ministry of Communication and Information to form a Digital Talent Scholarship is a real step towards advancing Indonesia's digital economy. By equipping the workforce with the necessary digital skills, Indonesia will be better prepared to compete in the global market and encourage economic growth," said Steven Santoso, Managing Director of Kearney Indonesia.