Indonesia’s pursuit of 8% economic growth hinges on bridging gaps in human capital, which remain a critical constraint on long-term competitiveness. Persistent challenges—such as low human development, an uncompetitive labor force, and lagging education quality, as reflected in PISA scores—are hindering Indonesia’s goal of accelerating growth and achieving developed-country status by 2045. Without significant improvements in workforce productivity and education outcomes, Indonesia risks falling behind its regional peers in the global economy. Addressing these human capital gaps through meaningful reforms is imperative for Indonesia to meet its ambitious targets.
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Center for Human Capital
& Entrepreneurship Development
Indonesia grapples with critical issues in human capital development...
Indonesia’s Human Development Index persistently lags behind ASEAN-5 and global averages…
Human Development Index
While labor force productivity is still above that of Vietnam, it remains uncompetitive compared to regional peers…
Labor Force Productivity (GDP Contant 2015, USD)
Education also shows a similar trend of lagging compared to Indonesia’s peer countries.
PISA Mean Scores
These challenges require immediate:
RESEARCH
COLLABORATIONS
IMPACT
From Research to Impact
Leveraging Private Sector Initiatives to Support Socio-Economic Development Agenda
This research identifies models for potential support to expand and replicate private sectors’ initiatives in the areas of education, health, and social empowerment. By examining successful case studies and best practices, the study aims to provide a framework for scaling these initiatives effectively.
Policy recommendations are offered to leverage the initiatives of IBC Members and other private actors in accelerating national development goals. These recommendations focus on creating synergies between public and private sectors to maximize impact and drive sustainable progress.
Forecasting the Course Ahead
The Indonesian Business Council (IBC) hosted the ‘IBC Business Competitiveness Outlook 2025,’ emphasizing four key approaches to enhance collaboration with the business sector and attract investment. These include governance reforms to improve ease of doing business, private-public collaboration in infrastructure development to boost socio-economic quality, advancing industrialization through downstream strategies, and promoting a green economy. Explore the IBC’s 2025 Outlook.
The Indonesia Economic Summit 2025
IES is a high-level forum designed to bring together international business leaders, policymakers, thinkers, and industry champions. The forum explores Indonesia’s current and future economic development, and how it becomes the new growth hub in the global landscape. In its first year, IES explore a range of topics, including industrialization, fiscal and monetary policy, investment, food security, energy transition, state-owned enterprise reform, international market diversification, green protectionism, human talent development, and others.
Analyzing the Issues
Agendas
Indonesia Economic Summit 2025
IES is a high-level forum designed to bring together international business leaders, policymakers, thinkers, and industry champions. The forum will explore Indonesia's current and future economic development, and how it...
Leading Partner
Collaborators
