NVIDIA Investment Decision Highlights Indonesia's Human Resource Challenges

Background on NVIDIA's Investment Choice

NVIDIA, a leading US technology company, has chosen Malaysia as its investment destination over Indonesia. The decision was attributed to Indonesia's lack of advanced technology human resources. According to Nurul Ichwan, Deputy for Investment Promotion at the Investment Coordinating Board (BKPM), NVIDIA's choice was influenced by the availability of skilled workers with master's and PhD degrees in computer science and related fields ¹

Key Factors in NVIDIA's Decision

The primary reason behind NVIDIA's decision was the insufficient number of highly skilled technology professionals in Indonesia compared to Malaysia. Nurul Ichwan mentioned that NVIDIA conducted an assessment of the availability of advanced degree holders in technology fields in both countries. Malaysia was found to have a more substantial pool of qualified professionals, which was a decisive factor in NVIDIA's investment decision.

Government Response and Future Plans

The Indonesian government has acknowledged the challenge posed by the shortage of skilled workers. Nurul Ichwan emphasized the need for the government and educational institutions to align their curricula with industry needs. The focus should be on producing human resources that are relevant to the technological advancements and requirements of industries like NVIDIA. This includes emphasizing the development of advanced degrees in technology fields.

Implications for Indonesia's Technology Sector

This decision by NVIDIA underscores the importance of human resource development in attracting significant technology investments. Indonesia has been developing its technology infrastructure, including the Nongsa Digital Park in Batam, which was intended to be a hub for technology investment. However, the lack of skilled personnel has become a critical bottleneck.

Conclusion

The NVIDIA investment decision serves as a wake-up call for Indonesia to address its human resource challenges in the technology sector. By focusing on education reform and industry-academia collaboration, Indonesia can improve its attractiveness to major technology investors. This involves not only increasing the number of graduates in technology fields but also ensuring that the education provided is of high quality and relevance to industry needs.