Analysis of Indonesia’s Human Resource Development

Abstract

Lack of human resource skills and low educational attainment are still problems related to human resources in Indonesia. According to the Society for Human Resource Management (SHRM), which represents 258,000 members in more than 165 countries, one of the main challenges for Indonesian human resources today is competition. They believe that the demand for qualified and trained human resources throughout the world has increased, but productivity and quality of human resources are still very low at present. In Indonesia itself, data shows that the number of workers has a low level of education. The Central Statistics Agency noted that Indonesia’s working population will reach 139.85 million people in August 2023. Based on their level of education, the domestic working population is dominated by elementary school graduates and below, the number reached 51.49 million people or contributed 36.82% of the total working population in the country. Then there were 24.85 million junior high school graduate workers, or 17.77%. Meanwhile, the working population with high school graduates is 28.33 million people or accounts for 20.25%. Meanwhile, 17.33 million Indonesian workers are vocational school graduates. The proportion reached 12.40%. Meanwhile, the population of university graduates is recorded at 14.44 million people, or 10.32% of the total working population nationally. Lastly, the number of workers graduating from Diploma I/II/III is the lowest, namely only 3.41 million people or 2.44%. Education level can indicate the quality and productivity of the workforce. According to the scope of work, the majority of the working population in Indonesia works in the informal sector, namely 59.11%. Meanwhile, the other 40.89% work in the formal sector. Because most human resources have limited skills and a low level of education, it will be difficult to increase the productivity and quality of human resources to compete. In the current era of advanced technology and industrialization, human resources are needed who can develop, think more advanced and are able to adapt to the times. The quality of human resources is the key to the country’s future success. Superior and competitive human resources mean that Indonesia is treated equally and respected by other countries. The quality of Indonesia’s human resources is still weak, therefore training and development needs to be carried out to improve quality. This research aims to analyze human resource development in Indonesia. Data was analyzed qualitatively. The results of the research show that Indonesian human resources have developed through education and training. This can be improved in order to achieve increased quality of human resources.