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Indonesia shoots up global talent rankings, still lags 73 places behind Singapore

arifnsn December 5, 2023

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Indonesia has made the greatest improvement among Asian countries in developing and harnessing talent over the past decade, according to a report by INSEAD.

Southeast Asia’s largest economy climbed 14 spots in the graduate business school’s Global Talent Competitiveness Index for 2019-2023 compared with the previous five-year period, making it the world’s second-biggest gainer after Albania’s 16-spot jump. Still, there’s more to be done for Indonesia, which placed 75th out of 113 countries.

Rich nations dominate the global talent landscape – Switzerland has topped the table every year, followed by Singapore and the United States – but developing countries like Indonesia have made the largest strides by improving quality of life and job sustainability.

Farmers plant rice seedlings in Bogor, West Java. More than 70 per cent of Indonesia’s labour force are reportedly employed in low-paying sectors like farming and construction. Photo: Xinhua

Indonesia still lags in high-level skills required by knowledge workers in professional, managerial or leadership roles.

More than 70 per cent of its labour force are employed in low-paying sectors like farming and construction, according to a separate report by HSBC Holdings Plc.

‘Losing talent’: flight of young Indonesians to Singapore alarms Jakarta

“If Indonesia makes progress on increasing talent competitiveness, workers’ salaries and productivity, with such a large population, then it can reap that demographic dividend,” said Felipe Monteiro, academic director of the INSEAD index.

“That creates this positive cycle of higher GDP, that attracts talent, which in turn drives even higher GDP.”

The country’s 270-million strong population, of which two-thirds are working age, holds the potential to unlock economic growth the way China’s did, he added.

Automation and artificial intelligence pose an opportunity for Indonesia to rapidly shift its workforce as there’s less legacy systems to hamper the reskilling.

“When you have a major transformation like this, there’s always an opportunity for emerging markets to leapfrog,” Monteiro said.

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