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Improving Competitiveness Through Vocational and Higher Education: Indonesia’s Vision For Human Capital Development In 2019–2024

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  • Sri Mulyani Indrawati
  • Ari Kuncoro

Abstract

This article explores Indonesia’s readiness to upgrade its human capital in response to changes in population and economic structure in order to harness the technological advances of the Fourth Industrial Revolution. The symptoms of premature deindustrialisation can be clearly observed in Indonesia, suggesting that it needs to improve its productivity to adapt to digital disruption and structural economic change. Supplyside advancement will require infrastructure and human resource development. On the production side, Indonesia will need to revitalise its manufacturing, service and resource-based sectors, treating them as value chains to be integrated into global networks. Indonesia’s education policy framework to upgrade human resources and improve the country’s competitiveness focuses on five areas: access to education; quality of education; synergies between government, industry and higher education; industry linkages; and incentives. Meanwhile, the disruption caused by the Covid-19 pandemic is forcing the Indonesian education system to instantly revolutionise its teaching methods to adapt to pandemic and post-pandemic conditions.

Suggested Citation

  • Sri Mulyani Indrawati & Ari Kuncoro, 2021. "Improving Competitiveness Through Vocational and Higher Education: Indonesia’s Vision For Human Capital Development In 2019–2024," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 57(1), pages 29-59, January.
    • Handle: RePEc:taf:bindes:v:57:y:2021:i:1:p:29-59
    DOI: 10.1080/00074918.2021.1909692
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    Cited by:

    1. Shumei Xiao & Jun Sheng & Guangtao Zhang, 2025. "Rising Tides of Knowledge: Exploring China’s Higher Education Landscape and Human Capital Growth," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 4392-4421, March.
    2. Nurina Paramitasari & Khoirunurrofik Khoirunurrofik & Benedictus Raksaka Mahi & Djoni Hartono, 2024. "Charting vocational education: impact of agglomeration economies on job–education mismatch in Indonesia," Asia-Pacific Journal of Regional Science, Springer, vol. 8(2), pages 461-491, June.
    3. Manjunath Patel G C & Likewin Thomas & Mujeebur Rehaman & Praveena R, 2024. "Brainstorming and Fishbone diagram Tools for Enhancing the Student Placement in Technical Education System," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 1436-1454, March.
    4. Rakhman, Fuad & Wijayana, Singgih, 2024. "Human development and the quality of financial reporting among the local governments in Indonesia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 56(C).
    5. Gao, Wang & Zhang, Hongwei, 2024. "The role of education attention on high-tech markets in an emerging economy: Evidence from QQR and NCQ techniques," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    6. Desmond Bayong & Bernard Bawuah & Elizabeth Amoah, 2025. "Advancing environmental, social, and governance disclosure in emerging economies: does regulatory environment and ownership structure matter?," SN Business & Economics, Springer, vol. 5(1), pages 1-45, January.
    7. Zien Yu & Leiming Liu & Xinyun Zhang, 2025. "Bridging the Gap: Enhancing Employment Opportunities for Normal University Graduates in China’s Knowledge Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 4246-4283, March.

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