"`Human capital` is the basis for prosperity and the driving key to `high income growth`," Indrawati said in a discussion on "Human Capital Early Adopters Ministerial Workshop" in Nusa Dua, Bali, on Wednesday.
The finance minister explained that Indonesia has understood the importance of human resource development to continue to improve the quality of education, health, social protection, and gender equality.
For this reason, Indonesia has prepared 20 percent of the budget in the state budget for the education sector, especially for the welfare of teachers and improvement of school management to increase productivity.
"Education will enable them to increase income potential and contribute to increasing the growth of the middle class," she noted.
In dealing with the issue of digital development, Indonesia also introduced strategic policies to improve the competence of workers through vocational training and publishing professional certification.
In the health sector, Indonesia has allocated five percent of the total state budget to ensure the improvement of the quality of public welfare.
However, Indrawati remarked that there are still challenges in implementing the policy because of some limitations.
Some of them are coordination between the central and regional governments, the quality of teachers in the city that is not equivalent to that in the village, the type of vocational education needed by the industry, and the quality of public schools that are not the same as private schools.
Reporting by Satyagraha
Editing by Otniel, Suharto