Tanoto Foundation Aims to Assist in Indonesia’s Education Efforts

A recent report issued by the Asian Development Bank had some worrisome predictions for Indonesia’s economy if the developing Southeast Asian nation does not devote adequate resources to educating its workforce to cope with 21st century needs. In a publication titled Innovative Asia: Advancing the Knowledge-Based Economy, quoted in Indonesian media in September 2014, the ADB noted that the country’s economic growth could be severely hampered if it does not close the supply-and-demand gap for mid-level management personnel within the next half-decade.

The report went on to say that Indonesia needs to step up its ability to offer high-quality education for its current youth cohort that is relevant to their needs as employees in an information-based global society. Currently, Indonesia employs only about 1 in 10 members of its workforce in science- and technology-related fields. Among the ADB recommendations: the country should fund a minimum of 10 research-oriented universities and provide initiatives that make it attractive for corporations to start their own universities for their staff members. The report urges Indonesia to boost its investment in research-and-development efforts from its current deficient state of 0.08 percent of its gross domestic product to 1.5 percent.

The incoming government of President-elect Joko Widodo has pledged increased educational spending, and the country’s current finance ministry has implemented a scholarship program and worked to develop tax incentives for companies that invest in R&D. Yet the private sector will need to play an increasingly important role as a partner in the government’s strategies.

This is where organizations such as the Tanoto Foundation come in. Established by Indonesian entrepreneur Sukanto Tanoto and under his and his family’s direction, the foundation has dedicated 15 billion rupiah to fund scholarships for higher education. Over the course of nearly a decade, the foundation has provided much-needed aid to more than 4,000 of the country’s students. Mr. Tanoto, a businessman whose RGE Group of companies is worth some $15 billion, has consistently worked to improve his own education through business learning programs such as that at The Wharton School of the University of Pennsylvania. His foundation has improved the lives of numerous families in some areas that are most in need in Indonesia, and it has additionally funded high-level development programs for both Indonesia-based and visiting scholars and business students.

Many believe that if Indonesia is to be successful in addressing the tremendous educational needs of its working young people, both public and private support will be crucial. The Tanoto Foundation stands ready to assist the government’s efforts through innovative partnerships that offer the possibility of achieving measurable results.