"We hope that by increasing productivity, we would be able to increase our potential outputs to restore our economic trajectory," Monoarfa stated during the coordination meeting for national development here on Thursday.
The minister affirmed that the mission to lever the national economic trajectory is consistent with the Vision Indonesia 2045 goals to achieve an advanced Indonesia that successfully breaks itself from the middle-income trap.
To achieve the target, Indonesia must record an average economic growth of 5.7 percent until 2045 and the eastern part of Indonesia must contribute 25 percent to the national economic growth, the minister noted.
Monoarfa remarked that while Indonesia had recorded relatively good economic growth performance, recurring issues in the national economy, including the productivity issue, still had to be addressed.
He pointed out that according to the Statistics Indonesia (BPS) data, Indonesia's productivity rate during the 2010-2019 period had shown signs of decline.
"The decrease in productivity is causal to the national economic growth stagnation at the five-percent level," the minister stated.
The productivity decline is exacerbated by the lack of innovation in the country as demonstrated by the national innovation index that is comparably low to other ASEAN countries, he noted.
Effects of the COVID-19 pandemic on the national economy, including the slow progress of economic and business recovery and the poverty rate that had yet to return to the pre-pandemic level, pose another challenge for Indonesia, Monoarfa pointed out.
He opined that as existing challenges have caused a decline in national productivity, increasing the productivity level is a crucial matter that must be addressed during the national economic development.
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Translator: Agatha Olivia V, Nabil Ihsan
Editor: Suharto
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