Lecture Notes on Human Resource Development and Productivity in Indonesia

Introduction

Discussion about Human Resource (HR) Development and productivity in Indonesia.
Featuring Mas Hasan, a veteran in HR and productivity discussions, with experience in Japan.

Current Perception: Productivity in Indonesia is perceived as low.
Comparative Analysis: Indonesia ranks below Singapore, Malaysia, and Thailand in productivity within ASEAN countries.
Data Source: Refer to 'Regional Study on Labor Productivity in ASEAN'.
Historical Context: Productivity growth has been stagnant since the 1970s, around 50 years.

Work Ethic: Generally, Indonesian workers might work “as they please” without strict adherence to plans (PDCA - Plan Do Check Act becomes 'Plan D' - Plan Not Done and 'Plan M' - Plan postponed to later).
Management Practices: Often, supervisors and managers act as superior operators rather than system creators or problem-solvers.
Implementation Gaps: Firms often have formal standards and documentation that are not adhered to in practice.
Lack of Systematic Improvement: Little emphasis on following standards or continuous improvement (Kaizen).

Lack of Strategic Positions: Indonesian employees are often unable to climb to strategic positions in multinational companies which are often filled by expatriates, especially in Japanese firms in Indonesia.
Perspective on Income: Common reliance on contractual entitlement to salary without a focus on contributing added value to the company.

Contributing Value: Workers need to adopt a mindset of contributing significantly more value than what they cost the company.
Growth Mindset: Importance of having career and learning plans to ensure continuous skill development and career progression.
Practical Example: Example provided where a wage of 4 million should see a contribution of at least 5 million to the company.

Foundational Skills: Focus on developing basic skills such as punctuality, following instructions correctly, basic literacy, and numeracy needs emphasis.
From Basic to Advanced: Critical thinking, problem-solving, and scientific methods should be ingrained from an early age to build a strong foundation for advanced skills.

Effective Training Systems: Adoption of proven training systems like Training Within Industry (TWI) which includes Job Instruction, Job Relations, and Job Methods to improve supervisors’ abilities.
Customary Practices: Encouraging learning habits, continuous improvement, and systematic problem-solving practices.

Japan's Productivity: Although Japan has challenges, their basic workforce attitude towards work and foundational training practices are effective models to learn from.
Observations on Vietnam: Vietnam is growing and showing a strong competitive spirit which Indonesia can also adopt by focusing on productivity and strategic positioning.

Call for Structured HR Development: Focus on a comprehensive and structured approach to HR development based on strategic planning and creating value-added contributions.
Need for Collaborative Effort: Encouraging collaboration between policymakers, educators, and industry leaders to develop a sustainable model for workforce development in Indonesia.

Interesting Facts: Historical reference to Training Within Industry (TWI) developed during WWII by the American Military for efficient labor productivity.
Cultural Differences: Distinguishing between mere operational roles and strategic roles in organizations stressing on systematic management approach versus ad-hoc practices.

Optimism: Despite challenges, maintaining an optimistic outlook is essential in driving positive change in Indonesia’s workforce.