Currently, Indonesia is in the period of demographic bonus for up to 30 years ahead, where the period of 2015–2045 will be marked by 70% working class out of the total population. 23. However, having large population without appropriately large proportion of highly skilled and educated people would make it difficult to exit the middle income trap.
Labor force with high education is crucial to shift the existing majority of labor-intensive/low-technology and resource-based industry up to the middle or high technology industry. 24. The development of human capital would lift up the productivity level of the labor force, which would in turn enhance Indonesia’s competitive advantage, which is an important prerequisite to excel within the current ASEAN Economic Community Era. 25.