Indonesia needs a growing number of qualified business leaders to take the country's emerging economy to a more mature level and help local companies prevail amid intensifying competition in the Southeast Asian region.
Indonesia’s business schools are creating the future leaders and entrepreneurs of the ASEAN’s largest economy while exploring the values needed for sustainable enterprise. This section looks at the approach being taken to business education in Indonesia.
Indonesia’s potential as a global hub for Islamic compliant finance has long been touted given the country’s status as the world’s largest Muslim majority nation. With some 85% of Indonesians classifying themselves as Muslim and a significant portion of the population remaining ‘unbanked’, Islamic finance can play a role in the country’s vision for inclusive economic development.
As Indonesia becomes an increasingly important pillar in the global economy given its promising economic outlook, setting it on course to be the world’s 7th largest economy by 2030 and its position as by far the largest economy in ASEAN, it is naturally attracting the interest of international students.
Coupling research and higher education is good news for the development of research in Indonesia but has not done wonders for the reform of its higher education institutions.
The shortage of talent is often cited by foreign investors as an obstacle for doing business in Indonesia. Without significant improvement in the education system, companies will find it increasingly hard to source professional and managerial staff, and the country as a whole will fail to realize its economic potential.
Indonesia in recent years has been criticised for its inability to retain the country’s brightest minds and now runs the risk of suffering from a widening gap to its key ASEAN competitors in innovation, technological advancement and scientific discovery.
While Indonesian research and development output lags behind its regional neighbours, the country’s renewed approach to the issue through the development of the new Research and Development and Higher Education Ministry should facilitate improvements as well as open up opportunities for partnerships.
Indonesia’s vision of becoming a knowledge-based economy and shifting away from a reliance on natural resources will depend on its commitment to increasing its R&D spending drastically and ensuring that funds are spent effectively.
Indonesia’s universities place a strong focus on ensuring graduate employment by maintaining close links with businesses for work experience and internships, however this relationship is not always reflected in cooperation for research.
Indonesia is currently undergoing a transition phase as it develops to become a knowledge based economy. Skills are seen as significant obstacles in this respect, and the country’s government is investing more in the development of the nation’s education and training system.
After much delay and controversy, the House of Representatives passed the Ministry of Education Bill called the Higher Education Act in July 2012. This article covers the details of the law and its implementation.
Despite the introduction of a bill designed to facilitate the commercialisation and internationalisation of higher education, Indonesia’s tertiary education sector remains largely untapped by foreign universities.
The Indonesian education sector offers significant opportunities given the major pool of customers, many of which are leaving for education overseas due to a lack of quality supply.
Indonesia’s surging service industries suffer from a distinct shortage in the availability of skilled labour; an issue that to date has prevented the sector from realising its potential as the driving force behind the country’s continued economic growth.
A good education is in high demand in Indonesia's vibrant economy, where tens of millions of people join the job market every year. A growing number of parents are happy to consider paying for education to maximise their children's opportunities in the country's globalising economy.
Number of Tertiary Education Institutions: 4,384 (2015)
Type: 91.5% Private, 8.5% Public
Students in Higher Education: 6,959,622 (2015)
Net Enrolment Rate in Tertiary Education: 20.18% (2014)
Relevant Law: Higher Education Law No. 12 of 2012 provides universities with the autonomy to set their own tuition fees and authorising the set up of foreign universities in partnership with Indonesian institutions.
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