Developing human capital industry through public private partnership: Is it Profitable?
I. Helvetikasari , I.D.A. Nurhaeni and D.G. Suharto

Magister Program of Public Administration Study , Universitas Sebelas Maret, Surakarta, Indonesia.

Abstract

The industry sector plays a strategic role in improving the development of the national economy and the wel-fare of society. The textile and garment industry sector is a non-oil and gas sector that had a big contribution to Indonesias GDP (Rencana Kerja Kementerian Perindustrian, 2017). Human resources are one of the most important and valuable assets in supporting industrial productivity. The partnership between the government and the private sector in creating skilled and competent workforce is expected to help the industry to meet the needs of the workforce in accordance with the needs of the industrial world. This article discusses partnerships between government and the private sector in human capital development in textile and garment industry. This research used a descriptive qualitative method. Primary data obtained through focus group discussion and observation. The research was conducted on the industrial partner of AK Tekstil Solo. The result of this research is a partnership between government and private sector have not been able to fulfill the requirement of human capital of textile and garment industry. The workforce that became an investment of a company does not have the expected soft skill although the hard skill is adequate. To further improve workforce productivity, it is expected to do soft skill coaching simultaneously with hard skill quality improvement.

Keywords: Public Private Partnership, Human Capital, Demand Driven

Topic: Strategic Management, Entrepreneurship and Contemporary Issues