Jakarta, July 27, 2023 – Indonesia still faces challenges regarding the readiness of university graduates in supporting downstream industries and the scarcity of entrepreneurs compared to developed countries. The government has set forth the vision of Indonesia Gold 2045. Several leading ranking institutions have positioned Indonesia as a country with economic strength among the top 10 to top five in the world.
The year 2045 stands as a significant milestone for Indonesia to become one of the developed nations globally, coinciding with the country's 100th independence anniversary. Therefore, efforts are required to unearth various challenges so that the national economy aligns with the future aspirations. In response to these challenges, LPDP took the initiative to organize a scholarship seminar titled "Indonesia Gold 2045: Human Resources, Industrialization & Entrepreneurship" on Thursday (7/27) at the Aryaduta Hotel, Menteng, Central Jakarta.
"We will listen to many ideas, and please, let us discuss so that we can contribute to the advancement of human resource development, especially in facing Indonesia's 100 years of independence," stated Wisnu Sardjono Soenarso, Director of LPDP Research Facilities, during the opening speech.
The Need for Industrialization and Entrepreneurship
Deputy of Bappenas for Economic Affairs, Amalia Adiningrat, as the first speaker, highlighted Indonesia's economic situation still plagued by challenges. Indonesia's economic status has been in a middle-income trap position for the last 30 years, hindering its progression into a developed nation. To advance towards a high-income economy, a robust and sturdy industrialization process is needed for economic growth.
"For us to progress, industrialization is the key to realizing Indonesia Gold 2045. This is what I mentioned earlier that Indonesia has been trapped in a middle-income country for 30 years, and for us to progress, our economic growth needs to be 6-7 percent," said Amalia Adiningrat.
The process of industrialization begins by preparing superior human resources, especially in response to the existing demographic bonus. Fulfilling educational needs up to the university level is essential to meet the demands of industry and entrepreneurship. Similarly, innovative research is needed for Indonesia to become a developed nation and serve as an incubator for industry and entrepreneurship.
Universities also play a pivotal role in driving reindustrialization in Indonesia. According to Arif Satria, Rector of Bogor Agricultural Institute (IPB), campuses must introduce innovations to support industrialization and harness skills that will develop in the future. Additionally, campuses need to support as technopreneur incubators to foster entrepreneurship.
Arif also pointed out that future campus competition will not only be among universities but also with micro-credential institutions affiliated with relevant work such as Google, which offers Google Career Certificates.
"The competition in the future for campuses will not be among universities, but its competitor will be Google, which has Google Career Certificates, and other industries with micro-credentials," explained Arif. He emphasized that this shift in competition arises due to industry dissatisfaction with the output from universities. If campuses are slow to respond to this phenomenon, it's possible that more industries will opt for certified graduates from micro-credential institutions rather than traditional universities.
The Challenge of Employing University Graduates
The phenomenon of unemployed university graduates is a pressing issue. Data from the Ministry of Education, Culture, Research, and Technology (Kemendikbudristek) in 2022 noted that 13.33 percent of university graduates were unemployed.
"In terms of presentations, all of these are significant challenges. We hope that universities can be a driving force in the nation's economic growth," said Nizam, Director-General of Kemendikbudristek, while presenting the material. Nizam further stated that Kemendikbudristek has taken steps. To enhance the quality and capabilities of entrepreneurs, the Independent Entrepreneurship Program was launched in 2022. This program aims to provide a platform for students to learn and equip themselves as entrepreneurs.
Director of LPDP Scholarships, Dwi Larso, pointed out that the high rate of unemployment among university graduates is due to the lack of industrialization and entrepreneurship. However, according to him, the majority of students desire to start their own businesses.
"Seventy-five percent of students want to start their own businesses during their careers. Only 25 percent want to work, work, and work. This needs to be facilitated. Otherwise, we will incur losses. There are already brilliant people who want to, but educational institutions do not facilitate them," he remarked.
LPDP continues to play a role in addressing these challenges by financing numerous programs that encourage entrepreneurship. "Since 2021, LPDP has financed many programs run by Kemendikbudristek and also by the Ministry of Religion. There are dozens of programs financed by LPDP since 2021, including the Merdeka Campus, vocational, non-degree; a significant number amounting to 4.6 trillion that we allocate for 2023," explained Dwi Larso.
The event, part of the LPDP Festival 2023 series, was attended by 300 people from various backgrounds. It featured a lineup of expert speakers in their respective fields, including the Director-General of Kemendikbudristek, Deputy of Bappenas for Economic Affairs, LPDP Scholarship Director, VP of Innovation & Enterprise at NUS Singapore, the Rector of IPB, and many more. The seminar was live-streamed on the LPDP RI YouTube channel and replayed for a comprehensive overview of the event.
