Indonesia Education Sector
Indonesia is the world’s fourth most populous country and 42% of its population is under 24 years old. The country’s real GDP growth is projected at over 5 percent in 2018. Indonesia’s booming economy has led to societal changes. This is underscored by a burgeoning middle class and a governmental shift expected to bring about unprecedented efforts towards developing the country’s human resource potential. In Indonesia, demand for professional training from companies and public institutions and a shortage of skilled labor are still very high and represent a clear challenge. There will be increasing competition for employment on six ASEAN countries (including Indonesia), because the AEC entails free movement of labor. The Indonesian education system is immense and diverse. The government uses regulations, laws, and decrees to properly control the education system across the country. Education spending has increased significantly in the years since the economic crisis. Indonesia conversely, even though of the high-budget allocation for education –20% from the national government budget–, has not yet been able to well-distribute and oversee an effective implementation for education in Indonesia, which has created disparities in quality of education between each province in Indonesia. The current situation opening up promising and potentially lucrative opportunities for foreign education providers with a well-defined offer, tailored to fill the numerous niches of Indonesia’s diverse education and training market. There are real and significant opportunities to provide education and training certification services, especially for computer studies, compliance, accounting and English language skills.