Sri Mulyani calls Indonesian human resources less productive than China and India

Jakarta, CNN Indonesia –

Finance minister Sri Mulyani to say productivity Human resources (MR) RI is very low compared to other Asian countries like China, India and even the Philippines. This is reflected in the low source of Indonesia’s gross domestic product (GDP) in relation to total factor productivity (TPF).

TPF describes the productivity from the efficiency level using a combination of capital and labor, including aspects of technology improvement. The low TPF reflects the high inefficiency in a production process.

“This shows in comparison with other countries. Calculated from the total factor productivity, we see that Indonesia’s human resources are still below that of other countries,” he said in a webinar entitled “Acceleration of Advanced Indonesia through Investment and Fiscal Incentives “. , Thursday (1/4).

Ani, as she is famously known, stated that Indonesia’s GDP growth from 5.3 percent in 2017 was due to 4.6 percent of capital and 0.6 percent of labor. Meanwhile, TPF’s contribution to Indonesia’s GDP growth is almost zero percent.

“Whenever we want grow (growing) we are only dominated by injecting a lot of capital and increasing the number of workers. There is almost no TPF, “he added.

This is very different from China, whose TPF contributed 2.3 percent to total GDP growth of 7.3 percent over the same period.

Meanwhile, the contribution of capital and labor to China’s GDP is 4.8 and 0.1 percent, respectively.

“That means that we grow more with muscle mass and sweat, but we don’t add value through innovation,” he explained.

According to Ani, the TPF’s minimal contribution to Indonesia’s GDP growth is due to the poor quality of education in Indonesia and the majority of the workforce is in the informal sector. In addition, the low TPF is also due to the lack of use and acceptance of the technology.

“Youth demography is Indonesia’s strong point. However, if we cannot innovate our human resources and continue to use technology to increase productivity, then we always will.” push away,” he said.

[Gambas:Video CNN]

(hrf / one)