The Growth of Asia (1)

Asia Era: Asia’s rising as a late comers with catching up strategy.

Source: “Australia in the Asian Century White Paper”, 2012

Source: “Asia 2050: Realizing the Asian entury”, ADB, 2010”

Source: McKinsey Global Institute, “The Archipelago Economy: Unleashing Indonesia’s Potential, McKinsey & Co, 2012

Souce: http://english.cw.com.tw/article.do?action=show&id=13906&offset=2

Kebangkitan Ekonomi Indonesia

Source: McKinsey Global Institute, “The Archipelago Economy: Unleashing Indonesia’s Potential, McKinsey & Co, 2012

Source: McKinsey Global Institut (Sept 2012), The Archipelago Economy: Unleashing Indonesia’s Potential, McKinsey & Company.

Kebangkitan Ekonomi Indonesia

Source: McKinsey Global Institute, “The Archipelago Economy: Unleashing Indonesia’s Potential, McKinsey & Co, 2012

• Globalization and labor market are unavoidable.

• No domestic market anymore. All are global market (including Kaki 5).

• “sovereignity” means winning the global competition.

• Ha-Joon Chang (2003), Kicking Away the Ladder: Development Strategy in Historical Perspective.

• The strategic role of higher education in human development, science, technology & arts !!!

Source: Lampiran Laporan Rektor berjudul “Tegakkan Kembali Kedaulatan Bangsa” dibacakan pada Dies Natalis UGM 19 Desember 2013.

Indonesia’s Demographic Dividend

Estimated to reach the top

“demographic bonus” in 2017

until 2019: the proportion of

productive age population

reached 55.5 percent.

Demographic Bonus

Big Proportion of Working Age (Source: Coordinating Ministry of Economic Indonesia, 2012)

11

Decreasing Dependency Ratio from 2010-2040: can become demographic deviden for economic development, provided that

good human resource development is in place.

Skills Most Needed In

creasin

g De

man

d fo

r Skille

d Lab

ou

r

Source: http://www.indosight.com/blog/recruitment-indonesia-managers/

Recruitment In Indonesia

Disparities in access:

• University enrolment is over 60% for children from the wealthiest 20% of Indonesian families.

• Enrolment was only 1% for children from the poorest families.

(Source: World Bank, 2012)

Source: Universities by accreditation status, 2009

Problems: • Survey of firms reveal:

– Weak linkages with industry. – Relevance and coverage of

curriculum. – Relevance to the labor market.

• Employees also highlighted concerns about: – Length of study. – Quality of teaching and

learning. – Specific skills etc.

Source: World Bank, 2012

Share of firms identifying the task of finding workers hard or very hard, by type of job

Source: Indonesia Skills Survey (2010), World Bank

• High level of skills are very hard to find (Higher Education).

• Skilled production is hard to find for exporting firms (senior secondary & vocational education).

• As Indonesia moves up the value chain, finding skilled production workers will be more difficult and employers are increasingly recognizing this.

By type of job

0 10 20 30 40 50

Unskilled production

Directors

Professionals

Sales workers

Permanent workers

Administrative

Skilled production

Share of staff in need of training

0 10 20 30 40

Primary or less

University

SMP

Diploma

SMK

SMA

Share of staff in need of training

By level of education

Source: Indonesia Skills Survey (2010), World Bank

• Grooming 10-20 Research Universities Research

University

• One Flagship University and Two Polytechnics at each Province

Teaching University/Pol

ytechnics

• One Community College at each District/City

Community Colleges

Source: Ditjen Dikti, 2013

High correlation between % graduates of technology, basic science, and agriculture programs and Product Domestic Bruto per Capita (r = 0,46)

0

5.000

10.000

15.000

20.000

25.000

0 10 20 30 40 50

Nila

i PD

B p

er

Cap

ita

(USD

)

Graduates from Techology + Basic Science + Agriculture (%)

1. % Current Grad of Technology, Science and Agriculture: http://stats.uis.unesco.org/unesco/TableViewer/tableView.aspx

2. Current PDB per Capita : http://data.worldbank.org/indicator/NY.GDP.PCAP.CD/countries

2,3

8%

1,7

8%

1,7

3%

3,8

0%

4,8

1%

2,2

8%

0,5

8%

1,2

6%

1,7

4%

5,1

7%

0,8

6%

1,0

6%

17

,72

%

5,1

7%

13

,17

%

11

%

29

,92

%

17

,69

%

25

,43

%

24

,00

%

16

,42

%

13

,74

%

8,4

3%

6,9

8%

10

,73

%

6,7

7%

13

,13

%

2,5

0%

9,6

0%

3,0

4%

14

,81

%

7,5

9%

9,2

4%

8,1

8%

13

,16

%

8,4

1%

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

35,00%

Pertanian

Teknik

Sains

1. % Graduates of Technology, Science and Agriculture): http://stats.uis.unesco.org/unesco/TableViewer/

• 2000’s: Internationalization of Higher Education

• Emergence of Bilingual programs

• Internationalization of curriculum

• International quality standard

• Joint programs (institutional partnership/ collaboration)

• Government scholarships to study abroad

• University & DGHE programs for internationalization: promote academic collaboration joint program, twinning/double degree program Source: Ditjen Dikti, 2013