Addressing poverty and unemployment through education in Indonesia


FOR a country ranked among the world’s 20 largest economies like Indonesia, the low percentage of people with postgraduate education, which stands at only 0.45% of the productive population, is a cause for concern.

This figure is considered very low even when compared to neighbouring countries such as Vietnam and Malaysia, where the ratio reaches 2.43%.

Undeniably, education in Indonesia still faces various challenges that need to be addressed collectively.

Looking deeper, it’s not just a matter of low postgraduate ratio, but also the unresolved issue of equal distribution of access to basic education.

The National Socio-Economic Survey (Susenas) conducted by Statistics Indonesia (BPS) in March 2023 found there were individuals aged 15 and above who had never attended school, both in urban and rural areas.

In urban areas, the rate stood at around 1.93%, while in rural areas it was approximately 5.11%.

Though these percentages may seem small compared with the total population, the findings are regrettable.

Furthermore, disparities in the educational attainment level are still evident. In urban areas, about 49.16% of individuals aged 15 and above have completed the mandatory 12-year education.

Meanwhile, in rural areas, 72.02% of individuals aged 15 and above only completed junior high school or below.

This means that only about 27.98% of individuals in rural areas have finished junior high school or equivalent.

Educational disparities are not only seen between urban and rural areas but also based on economic status.

Individuals aged 15 and above in the lowest economic status (quintile 1) were predominantly those with only elementary school education, while those in the highest economic status (quintile 5) were dominated by high school graduates.

Inequality

This data reflects the existing inequality in education access and opportunities involving economic factors. It is also evident in the number of poor household heads who cannot access education.

According to BPS data in 2023, around 38% of poor household heads had education equivalent to elementary school. Moreover, 26% of poor household heads have not completed elementary school, including those who have never attended school.

This situation is crucial to address because every citizen should have the right to education.

Essentially, human resources can only be improved through education, and with a highly skilled workforce, individuals are more likely to be empowered to improve their living conditions.

While education levels do not always correlate directly with one’s poverty status, acquiring education broadens one’s mindset. With a broader mindset, opportunities are expected to open up, and creativity emerges to enhance the quality of life. Low education, on the other hand, often closes many doors or acts as a barrier to obtaining decent employment. Eventually, individuals may work in sub-optimal conditions or even remain unemployed, unable to meet daily needs.

The results of the March 2023 Susenas indicate that 12.07% of poor household heads were unemployed. This could be caused by limited access to education, lack of skills, or insufficient job opportunities.

Therefore, efforts are needed to improve access to education and skill training that is easily accessible to poor households and aligns with the needs of the labour market.

Although the literacy rate for individuals aged 15 and above in Indonesia has reached 96.53%, there are still illiterate household heads among the poor who cannot read and write in Latin or other scripts.

In 2023, 8.48% of poor household heads were classified as illiterate. This condition is worrisome because it can be a barrier to accessing information and job opportunities.To address this issue, literacy programmes, especially among illiterate poor households, need to be intensified so that their reading and writing abilities can be continuously improved.

In the future, with strong literacy skills, it is hoped that they can access broader information, more job opportunities, and educational and training programmes.

This will lead to an improvement in their quality of life over time, including the ability to escape poverty.

Alleviating poverty through education may not happen quickly, but it is a strategy that will have long-term effects on improving the overall quality of life.

Building a foundation

Education is not just a gateway to job opportunities; it is also a tool for self-empowerment, enabling everyone to enhance their capacities. Through equal and quality education access, it is expected that individuals will be able to avoid falling into the poverty gap.

With sustained investment in education, a strong foundation can be built to eradicate poverty. Essentially, education is not just an investment in individuals or society; it is a significant investment in the future of the nation.

Achieving all of this requires collaboration from all parties, including the government, private sector, and non-governmental organisations, and the awareness of the importance of education from the public.

In addition to equalising access to education for the entire society, another aspect to consider is how to create graduates with skills relevant to the available job market. This is because, to date, there are still many individuals with higher education who are unemployed.

According to BPS data in August 2023, the unemployment rate for diploma programmes, bachelor’s, master’s, and doctorate graduates increased compared to August 2022.

The unemployment rate for diploma programme graduates rose by 0.20 percentage points, while the unemployment rate for four-year diploma programme, bachelor’s, master’s, and doctorate graduates increased by 0.38 percentage points.

This unemployment rate is an indicator to measure people who are not absorbed in the labour market and to portray underutilisation of the labour supply.

Furthermore, even graduates of vocational high schools are still significantly unemployed.

From August 2021 to August 2023, the unemployment rate for vocational high school graduates remained the highest compared to graduates of other educational levels, reaching 9.31%. — The Jakarta Post/ANN

Lili Retnosari is a statistician at Statistics Indonesia. The views expressed here are the writer’s own.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

Capital A's aviation segment records 90% load factor, 15.4 mln passenger volume in 1Q
QSR Brands confirms temporary closure of KFC outlets amid economic challenges
BNM partners MoF to host GFIEF with 'resilient global Islamic economy' theme
CIMB Group achieves Forward23+ targets despite external uncertainties
MBSB proposes change of name to MBSB Bhd
Ringgit unchanged vs greenback due to wait-and-see mode
Saudi-based ACWA Power keen on investing over US$10bil in Malaysia
Bursa Malaysia to close for Labour Day
Singapore’s Hildrics Capital increases stake in GIIB
AirAsia X achieves 83% passenger load factor in 1Q24

Others Also Read