To optimize the benefits of demographic bonus, it is necessary to have the right policy and commitments from all stakeholders so that the demographic bonus can become the capital for development instead of a burden. The purpose of this article is to explain the importance of the role of human capital and social capital in establishing a new institutional economics and improving competitiveness towards the golden generation. This research used explorative research methods and descriptive quantitative. The method of analysis used was the path analysis model. The results showed that the important role of human capital, social capital and social networks in which they could encourage the formation of a new institutional economics. Further, the new institutional economics would encourage increased competitiveness of regional and national businesses. The results of this study confirm that the important role of human capital can be a key factor in realizing the formation of a new institutional economics. However, its role to increase business competitiveness has not been optimized, so that the role of new institutions for improving business competitiveness also has not been optimized. It is recommended for further research to be able to involve various important factors such as; entrepreneurship, productivity and regional economic growth and employment opportunities so that the further research can have increasingly better policy implications.