Human resources no problem for RI: WB official

Human resources no problem for RI: WB official

JAKARTA (JP): Indonesia's shortage of skilled workers should
not be detrimental to the future growth of its economy, World
Bank representative Dennis de Tray said yesterday.

"I don't think human resources would cause a bottleneck in the
Indonesian economy, given the government's strong commitment in
promoting education in the country," he told the 27th congress of
the International Association of Financial Executives Institutes.

He said an adequate supply of skilled labor was one of most
important factors in sustaining high economic growth in
developing countries.

Improving people's education was a priority of the Indonesian
government's development program. Many educational institutions
have been set up in recent years, he said.

He said he was sure Indonesia could resolve its human-resource
problems, de Tray said.

Chairman of Indonesian Chamber of Commerce and Industry
Aburizal Bakrie said companies in Indonesia, like those in the
other ASEAN countries, did not have enough highly skilled workers
to compete with those from more developed nations.

He said ASEAN companies must be realistic in tackling this
problem.

The Association of Southeast Asian Nations (ASEAN) is made up
of Brunei, Indonesia, Malaysia, the Philippines, Singapore,
Thailand and Vietnam.

"We can't wait... and we should, therefore, recruit skilled
personnel from developed countries," he said.

De Tray said that Indonesia and other countries in the region
would become major players in the global economy in the next
decade.

He estimated that the East Asia and Pacific region, which had
7 percent economic growth over the last two decades, would become
the center of global economic growth in coming years.

Rapid economic growth in the region, according to de Tray,
would be driven mainly by the countries' export growth and
substantial foreign direct investment.

He said exports would continue to rise not only because of the
countries' increased efficiency, but because of the regions'
increasing intra-trade.

Direct investment

Foreign direct investment will continue to flow into
Indonesia, not only because multinational companies want to tap
the rapidly growing domestic market but because the region is the
most attractive place in the world to base production facilities,
he said.

In the past two decades, this region enjoyed the highest
economic growth rates in the world mainly because of their
governments' ability to adopt wise, outward looking and stable
macroeconomic management, he said.

"Serious attention to human resource development and the
implementation of human strategies based on countries'
comparative advantages are also important factors in the region's
economic achievement," de Tray said.

But De Tray warned the region must retain its stable
macroeconomic policies if it is to continue to be successful in
coming decades.

"Recognizing the need for change that globalization is
bringing is also another important aspect in maintaining high
economic growth," he said,

Speakers at the three-day congress, scheduled to proceed in
Bali today, include Bank Indonesia (central bank) Governor J.
Soedradjad Djiwandono, former Australian prime minister Paul
Keating and managing director of Bankers Trust of Hong Kong
William H. Overholt. (hen/pwn)