Building Indonesia’s Future Through Demographic Bonus
As the fourth most populous country in the world, Indonesia is at a critical juncture to reap the benefits of the demographic bonus.
This is a time when the proportion of the working-age population is at its peak and offers great potential for economic growth and improved quality of life. To capitalise on this moment, Indonesia needs to strengthen productivity and create an environment conducive to investment.
A large proportion of the productive-age population is an important asset for any country. In the Indonesian context, increasing productivity among the labour force can generate a significant boost to economic growth. One of the key strategies is to facilitate investment from the working population.
This investment will not only boost the economy, but also create new jobs, strengthen the middle class, and advance people’s welfare.
The middle class is a key factor in realising Indonesia’s 2045 vision as a developed country. To achieve this, strategies to improve access to education and health services must be prioritised. With healthier and more educated youth, they will be better able to delay their entry into the labour market and secure better jobs with higher wages.
This approach will contribute to the creation of an established middle class, which in turn will promote sustainable economic growth.
The link between the education curriculum and industry demand needs to be strengthened through close co-operation between the government and the private sector. Currently, many open job opportunities are still in the post-pandemic recovery stage.
Most of the available jobs are in the informal sector, which serves as a cushion for workers during times of crisis. However, with digitalisation, many jobs in the informal sector are now ‘intellectual,’ offering flexibility but still requiring protection for workers.
With the increasing trend of digitalisation and flexible work, it is important for the government to strengthen policies that protect workers in this sector. Flexible work arrangements must be balanced with welfare guarantees for workers, so that they are not caught up in economic uncertainty.
Increasing employment opportunities also requires an investment climate that is efficient and easy for investors to understand. In addition, it is important to ensure the availability of a qualified labour force that meets the needs of the industry. The existence of a skilled and ready-to-use workforce will give investors the confidence to invest in Indonesia.
Source: Bappenas
