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Utilization of Indonesia’s Digital Economy to Invest in Human Capital and Provide Socio-Economic Support to Stimulate Economic Growth

Author

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  • U. Y. Abdur Rahman

    (University of Maryland Global College, Adelphi, MD)

Abstract

An increase in current investment in the digital economy of Indonesia is needed to leverage the potential of human capital more effectively for the country to experience healthier economic growth. Company stake holders and government policy makers that are directly affected by the Indonesian economy can leverage the benefits provided by the digital economy segment to invest in human capital and stimulate economic growth through socio-economic support. An analysis of Indonesia’s socio economic situation in 2020 is conducted by analyzing trends in the population’s economic abilities, digital data connectivity, and education levels, then comparing the utilization of these resources to population case studies, social and economic theories, and documented research of government and private organizations. Human capital investment parameters were chosen based on previous economic studies which revealed that investing in the human capital of a country’s population promotes economic growth through means of economic empowerment, education, and technological advancement of the common population. This paper samples statistics from 2017 up to the first quarter of 2020 of the digital economy and labor market. In addition, this paper provides some review of the socio-economic impact of the COVID 19 pandemic as it relates to investing in human capital to stimulate economic growth. Most of the statistics used in this study are sourced from federal agencies and some are sourced from private organizations. Comparative analysis of the statistics reveals that services from the digital economy provide virtual presence; social connectivity; and data availability, access, and utilization. Also, financing endeavors of the country’s human capital through Peer to Peer (P2P) lending and investing in the education of human capital is important to stimulate economic growth. Furthermore, productive gains in business operations can increase across Indonesia’s industries if the skillset of workers currently in the labor market can be advanced through accessible training, such as online learning and certification platforms. Last, reforming and investing more in the accessibility and quality of education to the common population, even at a young age, can effectively develop individuals to create and maintain competitive advantages across Indonesia’s industries in the global and local markets.

Suggested Citation

  • U. Y. Abdur Rahman, 2020. "Utilization of Indonesia’s Digital Economy to Invest in Human Capital and Provide Socio-Economic Support to Stimulate Economic Growth," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 6(6), pages 312-322.
    • Handle: RePEc:apa:ijbaas:2020:p:312-322
    DOI: 10.20469/ijbas.6.10003-6
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    References listed on IDEAS

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    4. Iuliana Claudia Mihalache, 2019. "Health State of Human Capital in the Economic Theory," Postmodern Openings, Editura Lumen, Department of Economics, vol. 10(4), pages 182-192, December.
    5. Shiqi Zhou & Songsak Siriboonchitta & WoraphonYamaka & Paravee Maneejuk, 2020. "The impact of cultural industry on economic and employment growth in China," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 6(4), pages 129-137.
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