Indonesia urged to boost productivity to strengthen competitiveness

Indonesia’s Minister of Manpower Yassierli has emphasised the urgent need to enhance national productivity to bolster Indonesia’s competitiveness amid intensifying global competition.

“Productivity is a major challenge for us right now. In the last 10 years, our productivity growth has only been 25%, while China has reached 220%,” Yassierli stated in an official release.

According to the minister, Indonesia’s productivity levels remain 10% below the average of other South-East Asian countries, with total factor productivity showing a decline. This, he warned, indicates that Indonesia’s efficiency in producing goods and services is lagging behind its regional peers.

“We need to catch up,” he urged, underscoring that improving productivity is essential for national economic growth.

Yassierli highlighted that President Prabowo Subianto has instructed the government to prioritise job creation and productivity enhancement. The Ministry of Manpower, he added, is committed to driving these efforts forward.

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“We want to revive the spirit of productivity that was once a national movement in the 19070s. At that time, productivity was a main focus through the National Productivity Agency,” he said. “However, this term gradually faded, replaced by other terms like innovation, performance, and governance. Even though the essence remains the same.”

He also pointed out that productivity is often misunderstood as mere efficiency, leading to misconceptions about workforce reductions. Instead, he stressed, “The essence of productivity lies in our ability to generate greater output. High productivity will have a direct impact on economic growth and improved public welfare.”

The minister called on organisations, particularly medium-sized enterprises, to swiftly adapt to technological advancements and the demands of an increasingly competitive global market.

“Productivity is not just about using advanced technology. More importantly, it’s about building a productive mindset,” he said, reported Antara. “The Ministry of Manpower is ready to take the lead in the national productivity movement.”

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