Human Capital Development Programme (HCD)

completed

There are strong regional socio-economic differences in Indonesia, which in turn require appropriately adapted government interventions, including in the area of human capital development. The Indonesian government does not yet have an adequate data basis to plan and implement government interventions in a targeted manner. The Indonesian vocational training system is currently insufficiently developed in terms of quantity, but above all in terms of quality. Due to the currently inadequately developed unemployment insurance systems, many families have slipped into poverty as a result of the Covid-19 pandemic. The Boosting Productivity through Human Capital Development Programme (BPHCD) supports the Republic of Indonesia in identifying and implementing reforms to increase labor productivity for stronger and stable growth. ADB and KfW provide loans and technical support services, among other things. The planned reforms have gained additional importance due to the negative effects of the Covid-19 pandemic on the Indonesian economy. The implementation of the BPHCDP is linked to the implementation of a large number of individual reforms. The program focuses on factors influencing human capital development that can be positively influenced by government interventions. The program's reform matrix is divided into the following three reform areas: 1) Strengthening policies and strategies for better monitoring and financing of the Sustainable Development Goals (SDGs) 2) Strengthening the performance of the education system and professional skills development 3) Improving social security systems and the public health system The project aims to improve the development opportunities of young people and families at risk of poverty.