Human Resources Development in Indonesia – Towards 2045

Abstract

Human resources development (HRD) is vital to achieve Indonesia’s Vision 2045 (Coordinating Ministry for Economic Affairs, 2011). It is also emphasised in various chapters of the Project 2045 report (ERIA, 2018) from a political, economic, and social perspective. This policy brief introduces some key arguments in the above report, in particular the section on HRD. Indonesia’s Vision 2045 (ERIA, 2018) stated that HRD and technology advancement is one of its four development pillars. HRD contributes to economic development, political stability, and quality of life in Indonesia. Trend of urbanisation. Indonesia follows the general global trend of increasing urbanisation resulting from a rising population. In 2045, small towns and cities will grow. Big cities and peri-urban areas will evolve to become mega urban areas. The north coastal area of Java is projected to integrate as a large urban area. Some 90% of the population in Java lives in urban areas. Increasing urbanisation will shift economic activities from rural or land-based activities such as conventional agriculture to urbanbased activities such as services and industries. Trend of advancement in artificial intelligence, information technology, and disruptiontechnology. The industrial revolution 4.0 and the Internet of things focus on speed and quality. Industries will also have to survive in situations of volatility, uncertainty, complexity, and ambiguity (VUCA), including when disruptive technology emerges. Local resources and special economic zones. Indonesia is rich in natural resources, which have diverse potential in each area. It offers many opportunities to create businesses and industries to exploit these resources and their derivative businesses, which are generally localised. In addition, the Government of Indonesia has set up 12 special economic zones (SEZs), which enjoy special government services and incentives. Each SEZ has specific economic commodities or sectors based on local resources.