Our hope in 2045 is that our per capita income will move into a high income country (level). To support the vision, we hope our FDI will reach 4.5 percent of the GDP.Jakarta (ANTARA) - To achieve its 2045 vision of becoming a high income country, Indonesia needs foreign direct investment amounting to 4.5 percent of the national gross domestic product (GDP) annually, a Finance Ministry official has said.
"Our hope in 2045 is that our per capita income will move into a high income country (level). To support the vision, we hope our FDI will reach 4.5 percent of the GDP," Director General of State Assets at the Finance Ministry Rionald Silaban said at a function held to disseminate information on the Job Creation Law among investment management institutions here on Wednesday.
The 2045 vision refers to the country's target of becoming a high income country and among the top five economies in the world.
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Indonesia must get out of the middle-income trap by 2036 with per capita GDP exceeding US$12,233 so that it crosses US$23,199 by 2045, he added.
The country's per capita GDP stood at US$3,377 in 2015 and rose to US$4,546 in 2022. It is targeted to increase to US$6,305 by 2025 and US$8,804 by 2030.
Meanwhile, the nation’s debt-to-GDP ratio has continued to increase due to the COVID-19 pandemic. The ratio increased from 29.8 percent in 2018 to 30.2 percent in 2019, and then to 39.4 percent in 2020 and 41.1 percent in 2021.
"As per the state finance law, it must not exceed 60 percent," he noted.
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Therefore, Indonesia has set up the Indonesia Investment Authority (INA) to improve the investment climate in the country, he said.
INA, which serves as a sui generis institution, was created in accordance with the law. It is responsible for increasing investor confidence by boosting the credibility and perception of the country at the international level.
INA is aimed at increasing and optimizing long-term investment to support sustainable development.
Silaban said he believes that the INA will be able to help the government in meeting funding needs to develop infrastructures worth Rp6,445 trillion in the 2020–2024 period.
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Translator: Astrid Faidlatul H, Suharto
Editor: Fardah Assegaf
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