Five keys to save Indonesia from middle income trap: finance minister

Five keys to save Indonesia from middle income trap: finance minister

Screenshot of Finance Minister Sri Mulyani during a launch of her book 2045 Indonesia in Jakarta, on Friday, August 20, 2021. (ANTARA /Astrid Faidlatul Habibah/my)

Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati drew attention to five keys to usher in transformation deemed necessary to free Indonesia from the middle income trap.

Escaping the middle income trap is outlined in Indonesia's 2045 Vision that aims to make Indonesia a high-income nation, thereby positioning itself among the top five countries with great economic power.

"In 2045, Indonesia will be 100 years (old). May God fulfil the aspirations of Indonesia being able to celebrate its one century of independence," she noted in Jakarta on Friday.

The first key is to transform human resources, as Indonesians must be healthy, educated, and skilled if the country is looking to escape the middle income trap.

Indrawati stressed that human resources must have motor or intellectual skills to enable them to develop and work together to create networks that would drive Indonesia for the better.

Thus, the healthcare system in Indonesia will always be developed by coalescing it with digital technology advancements in order to create and offer the finest healthcare services.

Related news: Ministry reveals four keys to escape middle-income trap

The second key is educational transformation that will be closely related to transformation of human resources and the healthcare system, especially during the COVID-19 pandemic.

"Technology becomes important, especially during pandemic, when our kids cannot study in classrooms. It has its own impacts," she stated.

The third key is bringing about transformation in the area of social security based on the cue gained from high-income countries that are able to ensure their citizens' prosperity.

The minister explained that currently, the government was striving to reform the social security system, including through efforts to distribute subsidies to the intended recipients as well as empowering disadvantaged families.

“Again, the issue of digital technology is very important. Of course, it is related to data, ID, and systems. We should be able to foster reinforcement and provide assistance (for the less fortunate ones),” she affirmed.

The fourth key is economic transformation by making MSMEs and manufacturing and agriculture sectors as the sources of the state's economic strength.

"How to utilize technology in the global supply chain, how to increase productivity in the agricultural sector, and how to add value to the service sector and create jobs," she stressed.

The last key is the transformation of institutions by creating a sound institutional climate to create policies that can propel Indonesia towards achieving its goal of becoming a high-income country. 

Related news: Need 6% growth to break out of middle-income trap: ministry
   

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