Economic transformation is the best strategy to make Indonesia a developed nation and steer it away from the middle-income trap before 2045, National Development Planning Minister/ National Development Planning Agency (Bappenas) Head Suharso Monoarfa stated.
“Without redesigning economic transformation, even with simple mathematical calculations, in 2045, we will not be free from the middle-income trap if our economic growth is only five percent,” the minister stated during an online press conference here on Thursday.
According to Monoarfa, Indonesia needs to clock an economic growth of at least six percent to free itself from the middle-income trap.
Through economic transformation, the government seeks to change the economic sector from lower productivity to higher productivity sectors and boost efficiency in each sector.
The Bappenas head explained that economic transformation had to be conducted immediately to boost Indonesia’s economic growth above five percent per year. Transformation is also essential, so that Indonesia’s per capita income is not overtaken by the Philippines and Vietnam.
“Without redesigning economic transformation, Indonesia’s per capita income will be surpassed by the Philippines in 2037 and by Vietnam in 2043,” the minister remarked.
Moreover, Indonesia’s productivity level will also continue to decline and become the lowest in the Asian region if economic transformation is not conducted immediately.
Hence, 2022 is expected to be the first year for Indonesia to start freeing itself from the pressure induced by the COVID-19 pandemic and to be a key year for bolstering economic recovery.
“Economic transformation is expected to provide a solid foundation for us to realize Indonesia’s vision, as mandated by the president at his inauguration on October 20, 2019,” he remarked.
Source: Antara News