According to the Human Capital Report 2015, released by the World Economic Forum (WEF), Indonesia only ranks 69th out of 124 countries in terms of human capital development, signalling the importance of enhancing the education system of Indonesia. Alarmingly, Indonesia ranks well below most of its regional peers, for example Singapore (24th), the Philippines (46th), Malaysia (52nd), Thailand (57th) and Vietnam (59th). A low ranking means that a country fails to develop and deploy its human capital potential.

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After weeks of uncertainty, Indonesian President Joko Widodo announced on Monday (17/11) that prices of subsidized fuels (gasoline and diesel) are to be raised by IDR 2,000 (USD $0.16) per liter starting from midnight. Gasoline (premium) is to be raised from IDR 6,500 to IDR 8,500 per liter, while diesel will be raised from IDR 5,500 to IDR 7,500 per liter. Earlier it was speculated that an IDR 3,000 per liter price hike would be announced. However, as global oil prices have declined sharply, this was considered an unnecessary burden for the people.

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The World Bank released a news update which states that poverty reduction in Indonesia continues to slow down, with only a reduction of 0.7 percentage points over the last two years, or the smallest decline in the last decade. Meanwhile the institution says that inequality also increased in recent years, potentially disrupting social cohesion and hence jeopardizing the gains from solid economic growth, which has helped to reduce the poverty rate to 11.3 percent in 2014, compared to 24 percent in 1999.

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The Indonesian government should improve inter and intra island connectivity to boost the number of foreign and domestic tourists in Indonesia. Due to the country’s lack of quality and quantity of infrastructure, a number of Indonesian regions that contain huge tourist potential cannot be reached easily. This was one of the conclusions drawn at a dialogue about the progress made after the Masterplan for Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) has been underway for three years.

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A recent World Bank report focuses on the impact of the Teacher Law and its reforms, on teacher knowledge, skills, and motivations in Indonesia. The report also looks at student learning outcomes. In 2005, the Indonesian government had passed the Teacher Law in an effort to improve education in Southeast Asia’s largest economy, specifically by raising the quality of Indonesian teachers. Under the new law, teachers must complete a four-year college degree to obtain certification, and continue to improve their skills.

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Opinions about who won the vice-presidential debate, held on Sunday (29/06) in the Bidakara hotel (South Jakarta), were mostly mixed. However, when reading the Indonesian media on Monday morning there seems to be a preference for Hatta Rajasa’s performance (the running mate of presidential candidate Prabowo Subianto). When watching the debate, it was clear that Rajasa is a much more rhetorically gifted speaker compared to his rival Jusuf Kalla (Joko Widodo’s running mate).

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This evening (Sunday 29 June 2014), the fourth presidential debate took place, organized in the Bidakara hotel in South Jakarta. However, it was not a debate between the two presidential candidates, Joko ‘Jokowi’ Widodo and Prabowo Subianto, but between both vice presidential candidates: Jusuf Kalla (Jokowi’s running mate) and Hatta Rajasa (Subianto’s running mate). The theme of tonight's debate was development of human resources, science and technology in Indonesia.

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The Governor of Indonesia’s central bank (Bank Indonesia), Agus Martowardojo, said that the Indonesian economy can grow more than six percent provided that several important structural reforms will be implemented in order to avoid the middle income trap. This trap occurs when rapidly growing economies stagnate at middle-income levels for many years, thereby failing to reach a high income level (as has been the case with Brazil, Mexico, South Africa and other middle income countries from the early 1980s to the mid-2000s).

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The Indonesian government should take more action to reverse the country's widening income distribution inequality. Indonesia's Gini ratio, the coefficient that measures inequality among income distribution, has risen in 2013 according to economist Lana Soelistianingsih. The Gini coefficient rose from 0.37 in 2012 to 0.41 in 2013 (a coefficient of zero expresses perfect equality, while one implies maximal inequality). The growth not only shows that the Indonesian government fails to tackle this problem but also implies social risks.

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The unemployment rate of Indonesia is forecast to ease to 6.03 percent (7.24 million people) in 2014 from 6.25 percent (7.39 million people) in August 2013. The Indonesian government expects a reduction in the unemployment rate as the country's economic growth is assumed to grow strongly and thus will provide more job opportunities for Indonesians next year. Various institutions, including the IMF, World Bank and the Indonesian government, expect Indonesia's GDP growth in 2014 to range between 5.3 and 6.0 percent.

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On 25 September 2019, only a few days before Indonesia’s House of Representatives (in Indonesian: Dewan Perwakilan Rakyat, or DPR) finished its 2014-2019 term, it approved the 2020 State Budget bill (UU APBN 2020).

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In Southeast Asia, Indonesia is considered the land of opportunity. Located at the crossroads of the Pacific and the Indian Ocean, Indonesia is climbing up the ladder in terms of its education standards to bring better work opportunities and business arenas for the locals as well as foreigners.

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In the April 2018 edition of its East Asia and Pacific Economic Update, the World Bank is cautiously optimistic about economic growth in developing East Asia and Pacific (EAP). After a better-than-expected global economy in 2017, growth in developing EAP is expected to remain stable in 2018, reflected by solid prospects in Thailand and several commodity exporters, notably Indonesia. Domestic demand is estimated to remain robust in most of the region's economies and continue to underpin growth in 2018 and beyond. However, with economies operating close to their potential, price pressures are expected to rise.

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A new report shows Indonesia lacks behind its regional peers in terms of innovation. This is a concern because it means Indonesia's workforce is not equipped with the skills, knowledge or health that are necessary to be innovation-driven. Therefore, the Indonesian government needs to remain focused on enhancing the quality of education and healthcare. Innovation is widely regarded as a driver of economic growth and development.

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The month May is a memorable month for Indonesia in terms of historic significance. On 21 May 1998 former president Suharto - who ruled the country for more than three decades through his authoritarian New Order regime - resigned after having become politically isolated after Jakarta had turned into a bloody battlefield. This was one of the largest events in the political history of Indonesia, causing structural changes in the political system. Other key days in May are International Labor Day (1 May), National Education Day (2 May), and National Awakening Day (20 May).

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Ki Hajar Dewantara (also known as Raden Mas Soewardi Soerjaningrat), 1889-1959, was a writer, columnist, politician and advocator of Indonesian independence from the Dutch colonial power. However, he may be most remembered for his pioneering role in the development of education in the Indonesian colony. A native of Yogyakarta (Java), Dewantara founded the Taman Siswa school in 1922 in Yogyakarta. This school provided education for native Indonesians, whereas previously education was limited to the Dutch colonials and Javanese aristocracy.

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Indonesia's heavily depreciated rupiah makes it more difficult for Indonesians to study abroad or to send their children to universities abroad without having the financial aid in the form of a scholarship. For those that are thinking of making such a decision, they need to take into account the performance of the Indonesian rupiah as well as the inflation outlook in the country of destination. So far in 2015, the Indonesian rupiah has depreciated 18 percent against the US dollar, 9 percent against the euro, 14 percent against China's yuan, and 2.4 percent against the Australian dollar.

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Hariyadi Sukamdani, Chairman of the Indonesian Employers Association (Apindo), expressed his concern about unemployment in Indonesia, particularly unemployment among the younger generation of Indonesians (aged between 15 and 29). Amid slowing economic growth over the past six years, various industries have been cutting employment. With roughly half of the total population below 30 years of age, Indonesia’s demographic bonus can turn into disaster if this potential workforce fails to obtain employment opportunities.

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The Indonesian school grants program (Bantuan Operasional Sekolah, or BOS) is nearing the end of its first decade of operation. Over that period, the BOS program has been continually improved and channeled large amounts of funding directly to approximately 43 million primary and junior secondary schools across Indonesia. The huge BOS program aims to ensure that schools have sufficient funds to operate, reduce the education costs faced by households and improve school based management.

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On Monday (23/06), the World Bank released its latest analysis regarding the Indonesian economy. In its report, titled ‘Indonesia: Avoiding the Trap’, the World Bank states that Indonesia needs to implement a six reforms in priority areas in order to avoid the so-called middle income trap (referring to the situation where a country gets stuck at a certain income level). Without these critical reforms, the country’s economic growth will slow and may not be able to escape the middle income trap.

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