Presented by Prof Ari Kuncoro, Dean of the Faculty of Economics and Business, Universitas Indonesia, during the High Level Seminar Project 2045: The Path to Peaceful and Prosperous Indonesia and Japan 2045 held in Jakarta on 9 December 2018 by the Economic Research Institute for ASEAN and East Asia (ERIA) and UNDP Indonesia, under the funding of the Government of Japan.

1. Human Resource Development in Indonesia
in a Response to Digital Revolution
High Level Seminar
‘Project 2045: The Path to Peaceful and Prosperous Indonesia 2045’
9 December 2018
Ari Kuncoro
Faculty of Economics
University of Indonesia

2. Introduction
• The potential for a synergy between Japan and Indonesian economies is
enormous. Indonesia is a dynamic country with a relatively young
population characterised by diversity, growing middle class, plenty of room
for innovation
• The maturity of Japan such as advanced technology, sophisticated life-style,
and its experience on managing its development, both successes and
failures, could help Indonesia to exploit its demographic for the long time
to come
• From the production side Indonesia needs to revitalise manufacturing and
services sectors as well as resource base sector treating them as a value
chain to be integrated with the global network
• In other words to narrow the productivity gap

3. Human resource development and digital revolution
• Newly created technology as smart mobile devices, cloud-based IT
and advance data analytic are altering organization business model
including education institution
• Unfamiliarity with massive shift in technology as well the lack of
vision and commitment makes many caught unprepared
• Digital disruption is more difficult to anticipate which eventually
makes technologically adaption difficult due to its virtual
characteristic as well as the pace of technological shift which is
beyond the normal range of organizations’ vision

4. Key weaknesess
PISA Results (basic education)
0
100
200
300
400
500
600
2003 2006 2009 2012 2015
PISA Math score
Indonesia Japan Turkey
0
100
200
300
400
500
600
2003 2006 2009 2012 2015
PISA Reading score
Indonesia Japan Turkey

5. Primary and Secondary schools
• Less on rotten memorization and reciting more on critical and
creative thinking
• to improve communication and language skills, some computer
literacy, arithmetic and simple logic
• Launch a national program for upgrading technical competencies and
skills of incumbent teachers/instructors

6. Challenges for education institution
• To be more entrepreneurial
• University as a knowledge enterprise
• more responsive to social and economic demands
• to make the country more economically competitive and to create well-being
• Adopt corporate-like governance & management model
• Move away from discipline-based to thematic-based compartmentalization
• External Quality Assurance
• the sincere willingness to be reviewed, evaluated, audited, examined
externally

7. Organizational adaptation (Japan could help)
• to use data analytic in the organizational planning. This would require
building up data analytic capability within the organization
• This includes practicing evidence-based management, building
evidence-based decision-making culture and recognizing the evolving
landscape of due to the big data and digital revolution
• to identify the opportunity of which decision process can be
transformed with analytic model, to embed the results of data
analytic into decision process to improve organizational performance
• to measure the impact of analytical transformation through surveys,
data collection in the feedback loop mode

8. Higher education as a part of the innovation system
• Self-serving silo systems
• Public, private sector and universities
• In higher education over emphasizing on publication in the indexed
international journal (SCOPUS)
• R&D is rarely going beyond the lab and prototype
• The missing link between lab scale and commercialization of R&D

9. The prospect of long-distance online education Indonesia is
bright though the challenges are also daunting:
Lack of vision
• No understanding that education institutions have a new breed of
customers that they need to cultivate
• Organizational culture that inhibits the rapid development and the
release of new technology
• Inability to come up with measures to adapt the existing working
system with rapidly evolved new techniques, tools and capabilities
• A lack of trust in digital services and technologies
• Overly concerned about reliability, security and resilience
• Digital literacy

10. EdTech and communication technology
EdTech may be able to improve the quality of education.
Communication technology can be used to educate the people living far away from
schools (MOOC)
• Quality and equity in education are needed to improve the standard
of living of Indonesian
• Potential connection to non-formal and formal education in Indonesia
• Many potential MOOC students
• Goverment supports through Presidential and Ministerial regulations
• As promotional tools for universities
• Accesibility of qualified training is needed to improve professional
skills

11. Challenges for MOOC implementation
• Digital literacy is still low
• The education sector is heavily regulated by the government
• Course development in MOOC is expensive and time consuming
• Lack of multidisciplinary knowledge
• English skill are at still low