The ADB said improved education and skills development is necessary to create enough jobs to raise productivity, particularly to keep up with digital developments, in the study. 

ADB’s vice president for Knowledge Management and Sustainable Development Bambang Susantono said: “Not only does the country need to create a more skilled workforce, but it also needs to adjust to new global patters of technology and the demand for new skills.”

It also called on policy makers to ensure the initiatives aimed at productivity are inclusive to target the poor, women, older people and other disadvantaged groups.

Rudy Salahuddin, Indonesia’s deputy minister for creative economy, entrepreneurship and SME competitiveness, said: “Indonesia has a tremendous potential to capitalise on its youthful workforce by addressing the country’s long-term challenges to job creation and inclusive growth.”

The study, titled Indonesia: Enhancing Productivity through Quality Jobs, also said urban jobs are expanding faster and there is an increased need for supportive public policies for sustainable cities to general quality jobs.

It also called for continued efforts to improve labour market institutions and regulations that promote a wider range of employment options as well as better income security for workers.