Indonesia’s Human Development Index score continues to increase. Controlling the COVID-19 pandemic can be an opportunity to boost the index, which describes the welfare of the community, further.
By
M ZAID WAHYUDI
·5 minutes read
JAKARTA, KOMPAS – During the onslaught of the pandemic throughout 2021, Indonesia’s Human Development Index (HDI) score continued to increase in all the dimensions measured. The slowing down of COVID-19 cases and the economic recovery both need to be maintained to trigger a leap in the welfare of Indonesians.
Statistics Indonesia (BPS), in Jakarta, Monday (15/11/2021), announced that Indonesia’s HDI score this year stands at 72.29. Thus, Indonesia’s HDI score rose by 0.49 percent from 2020, which stood at 71.94. With a score greater than 70, Indonesia now joins the “high” human development category.
This year, no province reported a low HDI, or scored less than 60. On the other hand, there are two provinces with “very high” HDI scores above 80, 21 provinces with “high” HDI scores between 70 and 80 and 11 provinces with moderate scores between 60 and 80. Ten provinces scored higher than the national HDI, the highest being Jakarta with a score of 81.11. Papua reported the lowest HDI score at 60.62.
“Indonesia’s HDI has been high since 2016,” said BPS head Margo Yuwono. An increase in the score this year was driven by an increase in the scores of all three dimensions measured, comprising health, education and economy as well as standard of living.
The health dimension saw an increase in life expectancy indicators (UHH) from 71.47 years in 2020 to 71.57 years in 2021. This means that all babies born this year will be able to live to the age of 71.57 years.
The education dimension saw the average length of schooling for Indonesians over 25 years old rose from 8.48 years in 2020 to 8.54 years this year. Moreover, the indicator for the expected length of schooling for children aged 7 years, or when they begin formal education, increased from 12.98 years in 2020 to 13.08 years this year, equivalent to the length of a Diploma 1 (D1) program.
The economic dimension saw an increase in the expenditure per capita per year indicator, from Rp 11,013,000 (US$776.23) in 2020 to Rp 11,156,000 in 2021. However, Indonesians’ spending is lower than the 2019 per capita expenditure of Rp 11.3 million prior to the pandemic.
HDI data compiled by BPS are available from the national to district/city levels.
However, this data cannot be compared with the HDI scores of other countries as the purchasing power parity of each country has not been considered.
Comparing HDI scores between countries can only be done by using HDI data released by the United Nations Development Program (UNDP), which is published in the Human Development Report (HDR) at the end of each year.
In the HDR 2020, Indonesia’s HDI score was 0.718, in the “high” group and ranking 107th out of the 189 countries measured. However, if the planetary pressures adjustment is also included, Indonesia’s HDI score drops to 0.691.
Pandemic handling
Turro Selrits Wongkaren, head of the University of Indonesia’s Economics and Business Faculty’s Demographic Institute and expert on the government’s COVID-19 handling task force, said that under normal conditions, or without any significant fluctuations, the indicators of all three dimensions of the index would surely increase, albeit not significantly.
The HDI score can be boosted quicker if the economy grows well. The higher the economic growth, or the expenditure of the population, the greater the standard of living. This was proven by China, who had a lower HDI score than Indonesia before 1990 but whose HDI score now far exceeds Indonesia.
Although there have been two spikes in COVID-19 cases throughout 2021, Indonesians’ per capita expenditure has, in fact, increased. This increase, according to Turro, cannot be separated from the improvements in economic growth and proper handling of the pandemic.
In the first year of the pandemic in 2020, many citizens lost their jobs or had their pay cut. A great number of businesses also closed.
Now, the main challenge is to keep economic growth from being disrupted by another spike in COVID-19 cases.
The decline in spending made per capita expenditure calculated for the 2020 HDI also decrease compared with the previous year. As health and education indicators grew, Indonesia’s HDI score in 2020 then also rose compared with its HDI score in 2019.
Following a spike in COVID-19 cases throughout January and February this year, the government implemented community activity restrictions (PPKM) to suppress the spread of the disease and to allow the economy to grow. When another spike in COVID-19 cases was reported through July to August, the government then implemented a four-tiered PPKM.
These efforts have paid off, resulting in a reduced number of cases and decreased death rates. The wheels of the economy are now turning as well.
Additionally, the government has provided social aid for the lower class, small and medium enterprises (SMEs) and large industries. There is also aid for electricity, credit for school children as well as Pre-Employment cards. Although the aid was distributed in 2020, its benefits are felt this year.
Now, the main challenge is to keep economic growth from being disrupted by another spike in COVID-19 cases.