Designing a Cluster-Based Scenario to Capture Indonesia’s Demographic Dividend By Khairul Imam, S.Sos, M.Si
Demographic transition in Indonesia does not occur simultaneously nationwide and this affects the country’s efforts of capturing its demographic dividend. Disparity among regions with respect to their demographic characteristics means that a one-size fits all scenario, which treats all regions equally under one single policy, will not be effective. By employing cluster analysis method, Indonesian regencies/cities can be grouped based on their demographic similarities. This, in turn, allows for a pilot policy, as the national policy directive, to be developed for regions that share a cluster. This Policy Memo recommends the government to adopt two dimensions in its scenario to realize demographic dividend: a national policy that focuses on creating economic opportunities and governance quality to drive investment and job creation and a regional-level policy that focuses on building the quality of human resource using cluster-appropriate strategies.