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World Bank Criticizes Optimization of Investment Fund for HR  

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11 October 2018 13:02 WIB

World Bank President Jim Yong Kim speaks during International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 11, 2018. REUTERS/Johannes P. Christo

TEMPO.CO, Nusa Dua - World Bank Group President Jim Yong Kim appreciated the decision of the Indonesian government to allocate a quite large budget to boost the capacity of human resources (HR) through the education budget.

“Indonesia is a country that is fast in taking action on human capital issues. The education budget of 20 percent of the government is also quite high,” Jim said at a press conference of the IMF meeting - World Bank, Nusa Dua, Thursday, October 11.

Jim mentioned the fact that Indonesia's GDP per capita rose from US$785 in 2000 to more than US$3,800 in 2017, which is encouraging. In addition, the poverty rate also decreased by almost half to 9.8 percent from 19.1 percent in 2000. “We believe this country can continue its economic pace,” Jim said.

Indonesia is now ranked 87th out of 157 countries in the Human Capital Index or HCI. He asked the government to continue investing in human resources even though the expected results were not equal to the budget.

Jim reminded that Indonesia still has homework, which is the result of the large budget is still not optimal. At present, the World Bank and Indonesia are still working together to maximize the results that can be achieved in HR with the investments that have been given by the government.

“If we decide not to invest in HR, it can cause damage, because the work will later be replaced by automation,” said Jim.

In a report on the Human Capital Index released by the World Bank today, it is shown that 56 percent of children born today around the world will lose more than half the potential for lifetime income. It can happen if the government does not provide an effective investment for health, education, and the readiness of the community to enter the working world in the future. “For the poor, human capital is often the only capital owned,” Jim said.

The World Bank also warned that long-term threats to the economy must be considered from now on. In addition, to paying attention to short-term risks such as financial market volatility and trade tension, the world must pay attention to issues that cannot be seen in the near future, such as global warming and investment in human resources.

BISNIS.COM




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