Human Capital and Business Growth in Indonesia

English

Abstract

This study investigates 84 companies in Bandung and Jakarta (Indonesia) related to business growth,
human capital investment including education investment, health investment and work equipment
using secondary data collection methods from related companies and in-depth interviews with 84
employees who are very familiar with the company's business operations then quantified using the
autoregression moving average method. We found that investment in education and investment in
health had a significant positive relationship with business growth. However, investment in work
equipment is negatively related. This shows that the higher human capital in the company is related to
the efficiency of investment in work equipment.