Education and its role in emerging markets – Indonesia

I have just participated in the EHEF (European Higher Education Fair) in Indonesia where we presented graduate and undergraduate programs in Samarkand and Jakarta. It has been a hectic week with around 15’000 participating students and over 100 European universities and higher education institutions as well as representatives from embassies and the EU.

The success of the fair and the eager questions form the students reaffirm my belief in education as a key indication for how Indonesia is rapidly moving ahead.  With a GDP growth of 6,2% a drop in poverty and school enrolment exceeding 100% spurred by more and more overage students enrol in primary school. Indonesians have their eyes firmly targeted at education.

In the years to come I believe that Indonesia will benefit enormously from the education strategy in several key areas.

First, today Indonesia is a multicultural and multi-religious society blending its own unique history with Muslim, Christian, Hindu, Buddhist and many other religions together. However, as seen elsewhere economic development also have the backside of creating social tensions as some embrace and utilise the opportunities fully, while others feel left behind. What education can help with in this process is to ease the social tensions by providing a more even playing field (or at least as close to as possible) for young people who have talent. While there are differences in access to the best schools and especially for students access to education in Europe and the US it is significant it’s a significant contributor to mitigate the risk of social tensions.

Secondly, it will bring Indonesians in contact with the world in another way than business can. Through the social interaction between students from the countries they travel to and other international students networks are created which will benefit not only themselves, but also ensue long term social and economic sustainability as students become business and government professionals and need contacts that they trust around the world.

Thirdly, It brings knowledge to Indonesia, which is much needed in the years to come if the growth is to be supported and managed. One of the threats that the country is facing is that huge bubbles are created in the economy being in housing or specific sectors. Just taking a look from my one window at the hotel reveals five skyscrapers being build so it is definitely a risk that one have to take serious. And while bubbles is a natural part of a capitalist economy the impact can be cushioned though a economy which is build one more sectors and have more players. As students take business ideas back with them they create new businesses and thereby diversify the economy bringing a valued stabiliser into the equation.

While there are critical voices around the growing internationalisation of undergraduate and graduate education, as it is seen to some as a business rather than an “exchange” of ideas. It think that the benefits significantly and especially long-term far outweighs the downsides.