"For over 20 years, economic transformations in the primary sector - the agricultural and mining sectors - has gone to the tertiary service sectors," Darmin said here on Sunday.
The shift of the primary sector to the tertiary sector has resulted in the domination of the countrys industrial sector by service industry, he said at a media discussion organized by the Communications and Informatics Ministry.
He said the transformation of the economy from primary industry should result in secondary industry or processing industry, instead of service industry.
Darmin said in the period of 1993-2016, the country sector of primary industry shrank from 25.8 percent to 23.2 percent, the secondary sector declined from 24.4 percent to 22.3 percent and the tertiary sector rose from 49.8 percent to 54.5 percent.
He said the economic growth after the regional monetary crisis in 1997-1998 could reduce unemployment rate and the number of people living below the poverty line.
However, the growth tended to be lopsided in the distribution of the peoples consumption excepting in the period of 2015-2016 when improvement began to show.
Darmin said the present government is seeking sustainable economic structural reform that would benefit the whole people.
"No people should be left behind by the economic growth and not take part in the dynamics of development," he said.
One way adopted by the government to create equitability synchronization between economic policies and fairness in distribution, he said.
The attempt is carried out through development of infrastructure and deregulation to boost investment, he added. .
In industrial development, the government will give greater emphasis on basic industry like steel, petrochemical and base chemical industries.
"The government hopes to revive the role of the manufacturing sector in the countrys economic development," he said.
Analysts have said with the globalized economy, well-educated youth will be critical to Indonesia s competitiveness in the future. Demand for skilled workers will increase with skill-oriented technological change.
In addition, a large pool of skills also facilitates knowledge spillover and attracts technology imports. In the past decades, significant changes of Indonesia s labor market have already taken place. Non-agricultural jobs increased significantly, and skilled labor in non-agricultural sector is on higher demand.
In the meantime, higher level professional and managerial jobs have also increased. In contrast, unskilled, agricultural, and administrative workers are on lower demand. Overall, the earnings differentials between people with different education levels are significant. The marginal returns to higher levels of education - senior secondary or tertiary level - are increasing, they said.(*)
Editor: Heru Purwanto
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