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Demographic Bonus
Demographic Bonus
Indonesia have great number of productive labor since 2010 by 50,5% and facing lowest dependency ratio (46,9%) in 2028-2031.
"This demographic bonus momentum needs to be utilized as much as possible to achieve Indonesia's 2045 vision"
2045 Pillar Vision
Human resource development and mastery of science and technology
Sustainable economic development
Equitable development
National resilience and governance
The economic output of a country is a function of capital and labor. The more capital and labor in the economy, the more economic output that can be produced (Mankiw, 2016). As in bonus demographic era when the labor age is more than the non-labor age the economic need to be grow at maximum rate to facing the next demographic era like others developed countries such as, Europe and Japan, facing right now. The most important policy offered by researchers to maximize demographic bonus and lessen demographic burden is by education.
Current Indonesia's Condition
Current Indonesia's Condition
Unemployment rate of Indonesia
The average value of Indonesia unemployment rate during 1991-2021 is 5,1%. Government should be prepared to open up more jobs opportunity. The government should conduct a friendly business environment to the investors, and support an informal sector by giving microfinance and adequate training. In terms of providing infrastructure, the government should not only provide various infrastructures but also equate its distribution across the country. Moreover, to extend job opportunities, the government should develop outside regions and rural regions then apply internal migration, so the demographic bonus can be better utilized.
Education
The latest value from 2019 is 2.84% for comparison, the world average in 2019 based on 101 countries is 4.18 percent. This is lower than both the regional average (4.7%) and the average for its income group (4.7%).
"Improving the quality of human resources through education will be able to create jobs because of the formation of innovative, creative, and competitive characters in seeing a change in the upcoming years" -Sri Mulyani Indrawati, Minister of Finance
A high-quality work force is essential for future prosperity, but educational facilities and services are still remarkably low (Suryadarma and Jones 2013). Tertiary education (university and vocational training) needs to be expanded if tomorrow’s work force is to be skilled and innovative, and universal access needs to be achieved if development is to take full advantage of Indonesia’s rich and diverse cultural heritage.
The monitoring and evaluation of those programs are very important. The most important reason of this monitoring and evaluation is to prevent corruption that potentially occurs in the future. Furthermore, the monitoring of the program is very important to serve alternative plans if problems appear during implementation. The last but not least, all elements in Indonesia, the government, scholars, businessmen, investors, and citizen must cooperate and engage closely to succeed in maximizing the demographic bonus opportunity.
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