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

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.

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.

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“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.”

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