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Indonesia: Talent Management and Human Capital Development for Civil Service

Sovereign (Public) Project | 53375-001 Status: Proposed

The proposed investment project will address key constraints in planning and managing HCD: (i) leveraging digital technology to address challenges in fragmented, outdated, aggregated and unreliable data on labor and skills demand and supply; (ii) capacity constraints associated with competencies of civil servants in a fast changing world of work that increasingly requires tech-savvy and inclusive workforce; and (iii) institutional constraints for effectively developing talent and expanding options to test smart and innovative solutions with private sector partnerships. The government sees this project as a key initiative to build state capacity in driving inclusive reforms by leveraging technology to improve government effectiveness and make progress towards achieving its long-term development vision. The outputs are: (i) improved talent management system in the civil service; (ii) enhanced capacity of the civil service; and (iii) improved institutional capacity for talent management.

Project Details

Project Officer
Khatiwada, Sameer Southeast Asia Department Request for information
Country
  • Indonesia
Sector
  • Education
 
Project Name Talent Management and Human Capital Development for Civil Service
Project Number 53375-001
Country Indonesia
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Talent Management and Human Capital Development for Civil Service (formerly Indonesia Public Private Human Capital Management I-PACT)
Ordinary capital resources US$ 200.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Education / Education sector development - Tertiary

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed investment project will address key constraints in planning and managing HCD: (i) leveraging digital technology to address challenges in fragmented, outdated, aggregated and unreliable data on labor and skills demand and supply; (ii) capacity constraints associated with competencies of civil servants in a fast changing world of work that increasingly requires tech-savvy and inclusive workforce; and (iii) institutional constraints for effectively developing talent and expanding options to test smart and innovative solutions with private sector partnerships. The government sees this project as a key initiative to build state capacity in driving inclusive reforms by leveraging technology to improve government effectiveness and make progress towards achieving its long-term development vision. The outputs are: (i) improved talent management system in the civil service; (ii) enhanced capacity of the civil service; and (iii) improved institutional capacity for talent management.
Project Rationale and Linkage to Country/Regional Strategy

The Medium-Term Development Plan (RPJMN) 2020 2024 focuses on human capital development (HCD) for transitioning to an upper-middle income country. Given the changing demand for labor in the age of fourth industrial revolution and the types of skills required at work, Indonesia needs to focus on HCD to boost competitiveness and productivity. The government highlights that a high-performing and professional civil service that effectively implements policies and regulations is necessary for supporting progress towards development objectives. Improving the professionalism of the civil service is a goal over the government's next five years administration through investing in skills and capacities, as well as adopting more innovative strategies to boost performance and deliver quality services. The RPJMN 2020 2024 will be complemented by comprehensive human capital development programs (HCDPs) that include skills development strategies to build talent across public and priority private sectors.

In order to deliver on the HCDPs, Indonesia needs to enhance state capacity and improve associated business processes. In the World Bank's government effectiveness index which includes dimensions such as quality of public services and quality of policy formation and implementation Indonesia ranked 84 out of 193 countries, behind regional peers such as Malaysia and Thailand. Areas where Indonesia lags behind are public sector's capabilities, human resource management, and use of digital services. Mirroring this, on the global talent competitiveness index, Indonesia ranks 67 out of 125 countries. There are several reasons behind Indonesia's low performance on indicators of civil service and talent management: (i) limited data on skills demand and supply; (ii) underdeveloped human resource management system; (iii) limited use of digital technology for managing talent; (iv) inadequate education and training required for a modern civil service; (v) limited opportunities for skills upgrading and career progression opportunities for women; (vi) outdated institutional arrangements; and (vii) limited ability within the government to test innovative, smart, and tech-enabled solutions.

Impact Human capital for achieving national development priorities strengthened (Medium-Term Development Plan, 2020-2024)
Outcome Human capital in the public sector in Indonesia strengthened
Outputs

Talent management information systems in the civil service improved

Capacity of the civil service to deliver HCD plans and programs enhanced

Institutional capacity for talent management improved

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Khatiwada, Sameer
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Human and Social Development Division, SERD
Executing Agencies
National Development Planning Agency (BAPPENAS)
Jl. Taman Suropati No. 2
Jakarta 10310
Indonesia
Timetable
Concept Clearance 21 Feb 2020
Fact Finding 09 Oct 2019 to 09 Oct 2019
MRM 21 Nov 2019
Approval -
Last Review Mission -
Last PDS Update 29 Feb 2020

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Tenders

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Procurement Plan

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