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Minister of Finance (Menkeu) Sri Mulyani Indrawati became one of the speakers in The 2017 Human Capital Summit: Committing to Action that Drives Economic Growth in Washington DC on Jumat (13/10).

Indonesia’s Investment Program for Human Resource Improvement

Washington DC, 16/10/2017 MoF – Minister of Finance (Menkeu) Sri Mulyani Indrawati was one of the speakers at the 2017 Human Capital Summit: Committing to Action that Drives Economic Growth in a series of activities of IMF-WBG Annual Meetings 2017 in Washington DC on Friday (13/10) local time. She said, in terms of Human Resource (HR) investment, it is important to put forth equal opportunities not only to increase the economic growth quality for the country but also to create inclusivity and society’s dignity.

“Investment in human capital is important not only to improve economic growth but also to improve inclusivity and society’s dignity. Society that has equal opportunity will be the source of economy quality growth for their country,” she explained.

She added, the ability to achieve the outcome of 20% allocation for education and 5% for health are the two important approaches for Indonesia’s Human Resource investment.

“Indonesia has established 20% for education and 5% for health. The question lies in the capability to deliver the result and not on the commitment. What kind of policy that will help us achieving the desired outcome? The policies for education and health insurance are two very important approaches and both are utilized in Indonesia,” she said.

Prepared policies and programs should reach all targeted layers such as family, children, and women (mothers). They must address supply side capacity such as primary health to tertiary health. She explained the form of government support for the health of the people of Indonesia is the National Health Insurance (JKN), and Integrated Health Service Post (Posyandu).

“We use universal health coverage called National Health Insurance and Integrated Health Service Post to improve the nutrition monitoring system for children’s health. There are more than 260 thousand Integrated Health Service Post in Indonesia. We also introduced the skill up nutrition movement since 2011. The government has made the educational institutional degree for the movement into bachelor degree (S1) level. The movement strengthens political and policy commitment to the local level,” she explained.

In the field of education, the government provided an informal early childhood learning center (Early Childhood Education Program) in 2009. The government integrated formal and non-formal education for early childhood education under the Ministry of Education and Culture in 2010.

In addition, the government also provides School Operational Assistance (BOS) funds to support school management, Smart Indonesia Card (KIP) for underprivileged schoolchildren, and Non-Cash Direct Assistance for underprivileged families.

“In terms of the supply, we have to solve school problems and school management. The Government of Indonesia provides School Operational Assistance (BOS) so that students from underprivileged families do not have to pay for school fees. We also provide Indonesia Smart Card (KIP) for underprivileged children so they can continue to attend school. We also support vulnerable and poor families with Non-Cash Direct Assistance (BLNT). So that all these programs can improve the quality of human resources investment in Indonesia,” she concluded. (nr/rw)