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Jakarta Post

The Sunda Strait Bridge could be powerful conduit for building jobs skills in Indonesia

  • Will Hickey

Jakarta   /   Mon, August 13 2012   /  05:00 am

As I spoke to over 150 participants at Telkom Institute of Management in Bandung about skills transfer and work recently, the audience was eager to know what country I would recommend as a development model for Indonesia to create value added jobs.

It was not the US or South Korea (where I teach) but China, which has added considerable value added skilled jobs the past 20 years and has effectively passed by Indonesia in the process.

The model China uses fosters aggressive technology and skills transfer via their preferred mechanism of JV (joint venture) with foreign investors.

This model has worked so well that Foxconn is now looking for the exits in China due to higher labor costs and rising living standards. Again, I state my case that Indonesia and its leadership in the investment board (BKPM) should avoid this type of mal-investment and focus instead on using ...