The Vision of Golden Indonesia 2045 aims to position Indonesia as a developed country with a per capita income of USD 30300, significantly reduced poverty rates, high competitiveness, and enhanced human capital. Indonesia has immense potential, particularly with its demographic dividend of 128 million workers. Therefore, human capital planning and development is required to achieve high quality performance and productivity. This article highlights the vital role of the manufacturing sector in driving economic transformation. The manufacturing industry should be prioritized for boosting human capital, by taking advantage of the demographic dividend. Suppose that the manufacturing sector will employ 25% of the workforce. In that case, by 2045, this sector will employ 51.8 million workers—an increase of 30.8 million from 20.01 million in 2024. To enhance human capital within the manufacturing sector, several strategic steps can be taken: (i) implementing education and training programs that align closely with industry needs, (ii) developing infrastructure and the overall manufacturing ecosystem, (iii) improving the quality of human resources in key manufacturing areas, particularly in palm oil, organic basic chemicals from agricultural products, machinery, and automotive spare parts, and (iv) advancing agro-industry to stimulate economic transformation and create job opportunities in the agricultural sector. JEL Classification: J10; J21; O14
The interplay between occupational class, social status, and education in Indonesia is shaped by multiple forces, including economic changes, traditional social structures, and the growing significance of education in determining social mobility. This research aims to address the role of education and family background on child’s class measured by occupational status. This included measuring the relationship between parents’ education and parent’s occupational class as the family background determinant. The main data used to test the model was secondary data from the Indonesian Family Life Survey wave 1 to 4, allowing us to analyze the social class of father and child pairs, as the subject of this study, with a sample size of 4,035. Through path analysis, the finding shows the indirect pathway, mediated through education, displays a greater influence than the direct pathway. This suggests that education plays a critical role as a mediator in determining occupational status and social mobility. This finding is key to understand the persistent inequities in educational access in Indonesia, where family background continues to have a strong effect on children's educational and occupational outcomes. It suggests that policy interventions targeting educational equity could significantly reduce the impact of family background and promote social mobility. JEL Classification: F68; I25; Z13
Sustainable Development Goals (SDGs) consist of three pillars: economic, social and environmental. It has been observed that the environmental pillar in Malang City has declined, while the economic and social pillar have increased, indicating that economic and human activities in general have a big influence on reducing environmental quality. This research focuses on evaluating sustainable budget allocation strategies that support the environmental pillar. Budget efficiency analysis was used to assess SDGs achievement in Malang City from 2019 to 2022. Based on the calculation results of this research, Malang City's budgeting efficiency was in the "very poor" category during the 2019-2022 period. It was also observed that the best budget allocation strategy occurred in 2022. In addition, this research shows that the budget allocation strategy is sorted based on the immediacy of need into four budget allocation priorities. The priority grouping can be used as a sustainable budget allocation strategy, especially in the event of limited budget. From a socio-economic point of view, government policy is also a contributing factor with a negative impact on the environment. Therefore, it is hoped that the sustainable budget allocation strategy can serve as a solution to continue paying attention to and improve environmental quality while growing the economy.JEL Classification H72; Q51; R58
This research examines how the adoption of financial technology impacts the sustainability of Micro, Small, and Medium Enterprises (MSMEs), emphasizing the intermediary roles of financial literacy and financial inclusion. A random sample of 288 MSME owners was chosen from the 1,020 members participating in the business legality assistance program by the Bojonegoro Regency Cooperative and MSME Service. Out of these, 247 owners fully completed the survey, providing data for the research. Data analysis utilized Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results indicate that although the adoption of financial technology positively influences MSME sustainability, the impact is relatively modest. However, financial literacy and financial inclusion considerably enhance this relationship, with financial literacy exhibiting a stronger mediating effect. These outcomes highlight the importance of specific financial literacy initiatives and better access to financial services to promote the sustainable growth of MSMEs.JEL Classification L21; L26; O15
Transitioning into entrepreneurship can offer a viable path for former blue-collar workers to reenter the workforce following widespread job losses during the COVID-19 pandemic. This study investigates the critical roles of adaptability and resilience in facilitating this transition, with particular attention to how migration status influences success in becoming either formal or informal entrepreneurs. Utilizing detailed microdata from the August 2021 Labor Force Survey (Survei Angkatan Kerja Nasional - SAKERNAS), the study applies a multinomial logistic regression model to examine the transition patterns of these former workers. The findings indicate that former migrant blue-collar workers are more inclined to shift towards formal entrepreneurship rather than informal ventures. This suggests the importance of implementing supportive policies aimed at fostering entrepreneurial initiatives among blue-collar workers. Such policies could mitigate the risks associated with job losses, particularly in times of crisis, and provide a safety net by encouraging entrepreneurship. By facilitating entrepreneurial activity, these policies would not only bolster economic resilience but also offer alternative routes for workforce recovery, ultimately contributing to job security, financial stability, and long-term economic sustainability in the face of ongoing uncertainties.JEL Classification C25; J24; J63
