Analysis of Human Potential Resources Quality in High Growth Industrial Sectors in Indonesia

This study examines the alignment between sectoral growth and human capital quality in Indonesia, and its impact on wage outcomes. Using longitudinal Sakernas data (2012–2022) at the district–sector level with province fixed effects, the study finds that only 12.73% of regions simultaneously experienced high sectoral growth and rising tertiary-educated labor, yet these regions recorded approximately 74% higher wage levels. Education and training individually contribute modest wage gains (4–8% and 5–7% respectively), but their impact is maximized when aligned with high-growth sectors. The study recommends integrating human capital strategies with sectoral development planning to reduce regional wage disparities.