"The Bappenas diagnosis states that Indonesia`s stagnant economic growth is related to productivity issues," Expert Staff of the National Development Planning Minister Bambang Prijambodo stated at the Indonesia Economic Outlook 2019 event at the University of Indonesia, Depok, West Java, on Monday.
Indonesia`s productivity level is relatively lower as compared to countries with equal economies. Indonesia`s growth in productivity also did not improve after the financial crisis in Asia.
Bambang noted that one of the main causes of low productivity was problems with structural transformation. Some 30 percent of the Indonesian workforce is in the agricultural sector.
The problem of structural transformation can be overcome by providing quality investments on an ongoing basis.
Quality investment is mainly required in three fields: infrastructure, machinery and equipment, and human resources.
Furthermore, the role of the manufacturing sector in Indonesia is also not as big as that of neighboring countries, such as Thailand and Malaysia. The performance of the manufacturing sector also had an impact on international trade.
"Our exports are still dominated by commodities. In the 1970s, Malaysia and Thailand also depended on commodities for their exports. Now, their biggest export share is electronics," Bambang added.
Reporting by Calvin Basuki
Editing by Andi Abdussalam, Sri Haryati
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
