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[News] Staffing In Indonesia Must Find A New Course
Posted at: 02 July 2018

Human resource and staffing in Indonesia is always a problem. For a country of 265 million population, the issue doesn’t lie on the quantity of its human resources. It lies in their quality. Having an active workforce of 122 million people, with those aged 15 to 29 making up a third, only  7 percent  are university graduates. In fact, 42 percent have only completed elementary school, which ends at age 12, with 26 percent of the others having only completed junior high school, which normally ends at age 15.

The low quality of Indonesia’s labor force is reflected in a survey by the World Economic Forum’s 2017 Global Capital Index which ranks the country 65th of 130 surveyed. While it is up from 72nd in 2016, it still ranks far below its ASEAN neighbors. This lag, both academically and in competence, leads to limited opportunities for employment in certain sectors.

Staffing in Indonesia requires highly skilled human resource. The agricultural sector still is Indonesia’s largest job provider with 38.3 million in the workforce. Meanwhile, the service sector provides jobs for only 15.9 million workers, or 6 percent of the economy. In the United States, the European Union and Japan, the services sector provides more than 70 percent of jobs.

On the other hand, manufacturing and industry, which are expected to quickly turn the economic wheels and absorb myriad numbers, now only accommodate 16 percent of the workforce. Contrary to government aspirations, the sector is a long way from becoming the key source of employment.

Staffing in Indonesia requires highly skilled human resource. Therefore education is something important. Investment in human capital and fairer wealth distribution through state budget is prerequisite to Indonesia's development.

(source: Jakarta Globe)