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Investor Presentaiton

RP TRN • Digital Transformation Digital tools can widen access to education, employment and skills development Indonesia's budget for education increased by 29% in 2016-22 600 500 400 300 200 100 0 2016 2017 2018 2019 Digital tools offer wide-ranging value for human capital development Finding, attracting and retaining talent is among the greatest challenges for global human resources leaders, according to PwC's 2020 Human Resources Technology Survey Developing people to reach their full potential is another widespread challenge for companies Digital tools can drive productivity, innovation and growth, but require upskilling at all levels Upskilling amid automation widens access to high-skilled, value-added socio-economic opportunities 2020 Technological innovations help widen access to Indonesia's labour market 2021 2022 Labour market information system, Sistem Informasi Pasar Kerja, developed by the Ministry of Manpower 539,730 Registered jobseekers 485,212 job vacancies Online registration of individual jobseekers and firms, 2018 data Access to education varies by locality 70% secondary enrolment in East Nussa Tenggara, Sulawesi and West Papua in 2019 16% of Indonesians received tertiary education, compared to G20 average of 38%, in 2017 Government aims to increase the number of vocational training Pre-pandemic 300 centres 2024 500 President Jokowi's Pre-Employment Card Programme leveraged technology to help laid-off workers, 2020 Rp20trn 5.6m participants Certified digital skills training to widen socio-economic opportunities 85% secondary enrolment in Aceh and Bali in 2019 57% secondary enrolment in Papua The pandemic brought edtech investments to Indonesia but penetration remains a challenge Edtech is concentrated in Jakarta, where 55% of firms operate 57% of students are unaware of government-provided Rumah Belajar platform Social media and conferencing apps are more popular than edtech for digital learning Labour evolution Human capital development remains among President Jokowi's policy priorities. This will be essential for the country to meet future labour market demands and achieve high-income status. Indonesia's Human Capital Index score rose marginally from 0.53 in 2018 to 0.54 in 2020, according to the World Bank. This means that a child born in Indonesia will be only 54% as productive as they could be with complete education and full health. Inequalities based on household income remain a serious challenge. Digital tools can help address this, expanding the reach of the labour market, offering skills development and supporting Indonesia's transition towards a knowledge-based economy. PwC OBG ESG Report O OXFORD BUSINESS GROUP Sources: Cabinet Secretariat; OECD; PwC, Statista; UNESCO; UNICEF, World Bank 16 16
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