Indonesia has to redesign its economic transformation so that the growth planned before COVID-19 can be achieved, Economic Deputy Amalia Adininggar said at an online seminar here on Wednesday.
"The only way is to redesign the transformation of our economy. However, our future economic transformation should be inclusive. It needs to be a green economy, green recovery. It has to be sustainable," Adininggar remarked.
Indonesia can learn from Romania and South Korea, which have managed to escape the middle-income trap, she pointed out.
"Korea has developed a massive industry sector, which has also been complemented by an increase in human resources, research and technology. Romania could successfully grow because they diversified their exports from the labour-intensive low-tech sector to more productive sectors such as automobiles, machinery, and electronics," Adininggar explained.
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Thus, Indonesia's economic transformation can be realized by changing the economic structure of the sectors with low productivity to turn them into sectors with high productivity, she said.
Indonesia can also raise the productivity of each sector, she added.
Indonesia must push the growth of manufacturing exports because they are still low compared to other lower-middle income nations, Adininggar averred.
Indonesia must raise its export value per capita and diversify exports, she advised.
Furthermore, Adininggar stressed that the performance of the manufacturing sector must be maintained.
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Translator: Sanya Susanti, Fadhli Ruhman
Editor: Suharto
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