Indonesia Races to Close Looming Digital Skills Gap

Southeast Asia’s Tech Leader Faces Workforce Challenge

Indonesia’s booming digital economy, currently valued at over $90 billion, is threatened by a potential shortage of skilled workers, prompting a major government initiative to bolster digital education and talent development.

Government Action Plan

Pratikno, Coordinating Minister for Human Development and Culture, revealed that Indonesia anticipates a digital talent deficit of 3 to 6 million individuals by 2030. To counter this, the government is prioritizing a transformation of the education system, integrating digital skills into curricula at all levels.

The government is also accelerating the creation of a national platform dedicated to digital talent development, intended to serve as the foundation for Indonesia’s digital learning ecosystem. Furthermore, efforts are underway to foster a thriving digital innovation and entrepreneurship environment.

“We can no longer continue to work in government and institutional silos because, in this digital era, we are required to continue to collaborate across sectors through coordination with tools and rapid responses and major technological changes.”

—Pratikno, Coordinating Minister for Human Development and Culture

A key component of the strategy involves strengthening collaboration between government, industry, and academic institutions to ensure a coordinated approach. Long-term sustainability will be guaranteed through robust governance structures.

Economic Context & Future Outlook

Indonesia’s large youth population presents a significant opportunity to expand its digital talent pool. According to Statista, approximately 73.7% of Indonesia’s population is under the age of 40, providing a substantial base for future digital skills development. Statista, 2024

Pratikno emphasized the government’s role in establishing a supportive regulatory environment and attracting investment to provide the necessary infrastructure and resources. The government intends to act as a facilitator, bringing together stakeholders and strategic investors.

The increasing adoption of artificial intelligence in Indonesia further underscores the urgency of addressing the skills gap. Pratikno believes that a strong commitment to creating digital opportunities will accelerate the growth of the national digital economy.

Related initiatives include efforts to promote AI sovereignty through talent and infrastructure development, as well as programs empowering young minds with visual coding training and online learning opportunities.