Chatib Basri Highlights Weak Role of Human Resources in Indonesia's Economic Growth Sources
Senior Indonesian economist and former Finance Minister M Chatib Basri has stated that increasing productivity is the main factor that must be strengthened if Indonesia wants to achieve higher quality economic growth and be able to compete at a global level. Chatib assessed that the composition of Indonesia’s economic growth sources still does not rely on strengthening the quality of human resources (HR).
“The most important thing is productivity, we have a problem here,” Chatib said at the Grab Business Forum (GBF) 2026 event at the Shangri-La Hotel, Jakarta, on Tuesday (9/6/2026).
He stated that the quality of human capital is an important element to support long-term economic growth. Chatib believes that improving the quality of education must be the government’s main concern.
“So if you look at the composition of our growth sources, it is not on human capital. This is what I think must be improved,” Chatib continued.
Chatib added that the quality of schools is ultimately determined by the quality of the teaching staff. According to him, teachers have a central role in shaping the quality of Indonesia’s human resources.
“Actually, a good school depends on the quality of its teachers, which will determine it,” he said.
Chatib explained that low-income countries generally focus on technology adoption. However, for Indonesia, which has now entered the group of upper-middle-income countries, the challenges faced are greater because it must be able to drive the diffusion of technology while simultaneously generating innovation.
“Now that we have entered the upper-middle-income countries, what is more important is adoption, diffusion, and innovation,” Chatib continued.
As an example, Chatib highlighted India’s success in utilising digital technology in the financial sector. According to Chatib, the widespread diffusion of technology can change people’s behaviour and have a significant impact on economic development.
“One of India’s strengths is its diffusion when they use digital technology for finance. That has incredible implications for changing behaviour,” Chatib stated.
Amidst global economic uncertainty, Chatib still expressed optimism regarding Indonesia’s investment prospects. According to him, the various challenges faced today do not diminish Indonesia’s potential in the medium and long term.
“So never give up on investing in Indonesia. The situation might not be favourable at the moment, but hopefully in the future we will be better,” Chatib said.