Ministry reminds on importance of managing productive-age population

The Ministry of Population and Family Development (Kemendukbangga)/BKKBN has reminded the government of the importance of improving the management of the productive-age population so that the demographic dividend opportunity can be utilised optimally.

Deputy for Population Control at Kemendukbangga/BKKBN Bonivasius Prasetya Ichtiarto said Indonesia is currently in a very good momentum, with population growth relatively balanced at 1.2 percent and a large opportunity from a population structure in which the productive age group (15-64 years) reaches 68.94 percent.

“This large productive-age structure cannot automatically be called a demographic dividend; it is still only an opportunity. History has shown that not all countries have succeeded in converting this opportunity into a real demographic dividend. Many countries in Africa, for example, have failed and simply missed this golden opportunity,” he said in Jakarta on Wednesday.

Bonivasius added that the large proportion of the productive-age population, with a dependency ratio of 45.05, opens up wide national economic opportunities. In fact, referring to the potential of this population structure, the national economic growth target of 8 percent is still considered very moderate and can be achieved if managed optimally.

However, he said, the bad experiences of other countries, such as the bursting of Japan’s economic bubble due to the country’s lack of readiness in facing a surge in the elderly population, must serve as an important lesson.

“Therefore, this window of opportunity, which is estimated to peak in the 2035 to 2040 period, must be seriously maintained. The government emphasises the importance of management so that labour productivity is maintained and the future increase in the elderly population does not cause a drastic economic decline, but remains stable through directed population development policies,” he said.

Bonivasius continued that the government is currently preparing the Population Development Roadmap (PJPK), which serves as one of the basic foundations for the government to map the productive-age population so that they can be absorbed more quickly into the workforce, and to ensure there is no mismatch between labour market needs and the competencies of university graduates in Indonesia.

“The Ministry of Manpower is currently listing competencies. There are codes such as the Indonesian standard industrial classification, and then there is a competency classification. For example, to become a craftsman or shoe entrepreneur, a person must be skilled at sewing shoe soles, and then it is mapped: what are the needs? For instance, if senior high school is sufficient, then how will senior high schools train them to have those skills,” said Bonivasius.