Only fewer than 20 countries have managed to escape the middle-income trap.
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati has revealed the four keys to pull Indonesia out of the middle-income trap. "Only fewer than 20 countries have managed to escape the middle-income trap. This is a real challenge," she said in an online discussion here Wednesday.

The first key is improving the quality of human resources since it can increase the country’s productivity to be a high-income nation, according to the minister.

Education, health, and social security sectors are crucial to improving human resources, she stated.

"The government has allocated an abundant budget for the three sectors. However, it is not only about the budget. Reformation and effectiveness are also important to have great human resources," she said.

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Meanwhile, the second one is excellent infrastructure, Indrawati said.

She also emphasized the importance of having cooperation with private parties in funding infrastructure development as no country has managed to merely depend on its state budget to build its infrastructure.

Furthermore, the third key is improving the regulations and bureaucracy, she continued.

Attempts are currently on through the Job Creation Law. The government has urged both national and regional public institutions to serve the public better, she informed.

The fourth and last one is the ability to transform the Indonesian economy into a digital economy based on efficiency and productivity by conducting competitive, simple and open regulations, the minister added.

"Reforms have been partially regulated in the Job Creation Law and Taxation Law by abolishing the regulations that hinder the business sector. We will keep improving every aspect to facilitate the sector, especially the public services," she added.

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Translator: Agatha Victoria, Uyu Liman
Editor: Suharto
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