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Sustainable Development Goals (SDGs) as we have probably known, is comprised of 17 goals that aim to particularly alleviate poverty, inequality and injustice, as well as to tackle the issue about climate change by 2030, as part of Sustainable Development the world leaders aim to achieve.
Comes the next question, how do member states work on achieving this? Through an Indonesian perspective, I will try to display some specifics to you.
In the first year out of fifteen has been generally characterized with the deterioration of global economic conditions making the achievement of the SDGs, and in particular Goal 8, more challenging in all countries. Indonesia is not alone in finding itself at a cross-road in its economic and social development. Planning for the medium term to 2030 thus needs to take account of pressing shorter term challenges while ensuring that current policy initiatives contribute to the medium term goals of sustainable development. Despite the external factors including the economic slowdown in China, plummeting commodity prices and volatility in financial markets have sparked memories of the 1997-98 Asian crisis, macroeconomic policy and the economic fundamentals remain sound.
The authorities in Indonesia have reinforced their strong commitment to macroeconomic and financial stability and, although there is no cause for complacency, the Indonesian economy has continued to grow at a reasonable pace.
Looking ahead over the medium term to 2030, a key driving force in transforming development in Indonesia, and many other developing economies, is the promotion of inclusive and sustainable industrialization. Diversifying current economic and employment structures is central to sustained economic growth, poverty reduction, full employment and decent work.
A Social Dialogue Agenda on Inclusive Growth and Decent Work The cross road at which Indonesia finds itself in 2016 coupled with the challenge of devising a national sustainable development strategy to meet the ambitions of the 2030 Agenda is an opportunity to start a broad social dialogue agenda which embraces, amongst other things, investing in skills and improving labour relations. In addition to minimum wages and collective bargaining, the following topics warrant the early attention of a high level tripartite forum and are central to a policy framework for sustainable development:
Productivity and labour mobility
Labour productivity is enhanced by workers moving from low to higher productivity jobs, by human capital development such as through learning on the job, by a deepening of the capital stock, and by improvements in the efficiency with which labour and capital are combined.
Investing in a more effective education and training system
The level of expenditure on education has been rising rapidly for well over a decade. By 2012 public expenditure on education amounted to 18 per cent of total government expenditure, or 3.6 per cent of GDP. However because tax levels and public expenditure levels in Indonesia remain low by international standards, the proportion of GDP devoted to education still remains below the global average of 4.7 per cent of GDP.
Vocational training and apprenticeships
Reforms that would encourage larger firms to invest in genuine long term vocational training programmes that combine on-the-job training with structured courses in state of the art vocational training facilities would make good sense.
Social protection as an enabling factor to reduce inequality and promote competitiveness
In a context shaped by rapidly rising inequality and increasing international competitiveness social protection can and should play a central role in the country development strategy. According to a recent World Bank survey, social protection is ranked by Indonesians as one of the three most important policies for reducing inequality. Its potential impact derives directly from its direct role in income protection and redistribution but also from its positive influence in human capital development and productivity. Developing and implementing a comprehensive social protection system is indeed one of the key axis of the country’s National Medium-term Development Plan (RPJMN 2015-2019).
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