Higher Education Minister Says University Applicants Declining Due to Low Workforce Absorption

Minister of Higher Education, Science, and Technology, Professor Brian Yuliarto, stated that the number of university applicants has been decreasing. 

Minister Yuliarto acknowledged this decline in student applicants as one indication of a decreasing job market. 

“I’ve met with several rectors from public and private universities, and we are seeing a drop in university applicants. This indicates a decrease in demand for skilled, knowledgeable, and highly educated workers. The data confirms that part of our industry has perhaps shifted primarily toward trade,” he said during the “Igniting the Nation’s Conscience” public lecture broadcast online on UGM’s YouTube channel Wednesday (Mar. 19).

The minister believes that Indonesia is entering a period of reduced manufacturing capabilities, making it necessary for the country to revive its industries. 

The emergence of various industries is essential to improving welfare, which in turn enables people to enhance their nutrition and afford to send their children to higher education.

On the other hand, the country faces a dilemma: creating industries first or preparing top-quality human resources. 

“If we focus too much on creating top-quality human resources, our research and innovation might become strong, but if industries aren’t ready, we may be clapping with one hand. Conversely, if industries are set to grow rapidly, but human resources aren’t ready, that becomes a problem too,” the minister explained.

He mentioned that the ratio of master’s and Ph.D. graduates to the productive age population in Indonesia is only 0.5%, far below developed countries, which have a ratio of around 9%. 

Even compared to Malaysia, Vietnam, and Thailand, which have a ratio of 2.4%, Indonesia still lags behind. 

He argued that to escape the middle-income trap, Indonesia must advance and compete in mastering technology and innovation. 

“One of the biggest challenges for higher education in Indonesia is to significantly increase the index of technological innovation mastery and the number of researchers. Furthermore, Indonesia’s rank in the Global Innovation Index remains relatively low, indicating that we need a more aggressive strategy in promoting innovation and research,” the minister stated.

Additionally, the minister urged universities to increase the number of postgraduate graduates in science and technology, invest in research, and strengthen connections between academia and industry as key steps to accelerate technological advancement in Indonesia. 

With the right strategies, Indonesia can harness its abundant human resources to catch up and become a more competitive country in the global technology era. 

“We are working to create joint funding between industry and universities, especially for researchers who have long researched specific products. The hope is that we can produce products ready for commercial industrialization in Indonesia,” he added.

The minister also discussed the role of social sciences in technology-based industrialization. Equity and social inequality are key concerns in the development of advanced industries. 

If not accompanied by good social transformation, the impact could become a significant problem for society. 

“For that reason, ambitious industrialization is a strategic step that must be taken. However, this acceleration should not focus solely on economic and technological aspects but also needs to be complemented by social and community analysis,” Minister Yuliarto said.

He believes that a scientific approach would greatly assist in designing strategies that boost economic growth and create equitable welfare for all citizens. 

“Effective social transformation must be an integral part of national industrial development,” he explained.

Regarding the limited access to high-quality learning materials available at leading universities such as ITB, UI, and UGM, the minister mentioned that there is a significant opportunity to utilize artificial intelligence (AI) to distribute educational materials from top universities to underserved areas. 

Through an AI-based resource-sharing system, students in remote regions could access lectures from Indonesia’s best professors. This concept is similar to that implemented by MIT, which distributes lecture materials to various countries, including Africa. 

“If implemented well, AI will become a tool that improves teaching efficiency and promotes equitable access to education for all Indonesian people,” he concluded.

Author: Triya Andriyani

Post-editor: Afifudin Baliya

Image: Freepik