HUMAN CAPITAL DEVELOPMENT PROGRAMME (HCD)

Indonesia has strong regional socio economic differences which in turn require correspondingly adapted government interventions including in the human capital development sector. At present the Indonesian government does not have an adequate data foundation to be able to plan and implement state interventions in a targeted manner. The Indonesian vocational training system is still insufficiently developed. Due to the insufficiently developed unemployment insurance systems so far many families have slipped into poverty as a result of the consequences of the Covid 19 pandemic. The Boosting Productivity through Human Capital Development Programme (BPHCD) supports the Republic of Indonesia in identifying and implementing reforms to increase labour productivity for stronger and stable growth. ADB and KfW provide loans and technical support services for this purpose. The planned reforms have gained additional importance due to the negative impact of the Covid 19 pandemic on the Indonesian economy. The implementation of the BPHCDP is linked to the introduction of a large number of individual reforms and aims to improve the development opportunities of young people and families at risk of poverty. The programme focuses on determinants of human capital development that can be positively influenced by government interventions. The programme's reform matrix is divided into the following three reform areas 1) Strengthening policies and strategies to better monitor and finance the Sustainable Development Goals (SDGs). 2) Strengthening the performance of the education system as well as professional skills development 3) Improving social protection systems as well as the public health system.