The Development Strategy of Human Resources to Enhance Indonesia's National Economic Growth

Abstract

Indonesia faces significant challenges in achieving sustainable and inclusive economic growth amid rapid globalization and technological advancements. Effective human resource development (HRD) is crucial to overcoming these challenges and ensuring long-term prosperity. This study employs a qualitative literature review method, systematically analyzing relevant books, scholarly journals, government reports, and official documents related to HR strategies and economic growth in Indonesia. The analysis highlights key strategies such as prioritizing education and skills development through increased budget allocations, scholarships, vocational training, and industry collaboration. Strengthening health and well-being is emphasized as a foundation for enhancing workforce productivity, while addressing unemployment requires aligning labor market demands with continuous investment in human capital and technology. The digital transformation era calls for enhancing digital skills and adopting innovative HR management practices to cultivate a competent and adaptable workforce. Furthermore, strategic HR management, including industry involvement in curriculum development, is vital for supporting national development objectives. The findings suggest that coordinated efforts across education, health, and industry sectors are essential for sustainable economic growth. Future policies should focus on balancing foreign expertise with the development of local HR capabilities to foster long-term resilience. In conclusion, a comprehensive, integrated approach to HR development, supported by effective policy and management, is critical for Indonesia’s economic progress. This study offers practical recommendations for policymakers to enhance HR capacity and achieve inclusive growth in the digital age.