This is because the advantages from the demographic bonus or the productive age population in Indonesia will only last until 2035, Raden Pardede explained at the ‘Regsosek Talk: Younger Generation Builds the Nation’ event.
Therefore, he urged all parties to maximize the demographic bonus opportunity within the remaining years.
"If we cannot escape from the middle-income trap within the next 12–14 years, then we will truly lose the opportunity. We should utilize it," Pardede stressed.
He outlined several efforts that Indonesia can make to maximize the demographic bonus, which have also been successfully carried out by several East Asian countries, such as Japan, South Korea, Taiwan, and China.
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The first effort involves creating productive and quality jobs through industrialization and servicification, wherein industry and service quality are matched by the development of other creative industries such as fashion, arts, and cosmetics.
"There should be a combination of industrialization with creative industry development. If we look at countries that escape the middle-income trap, they always have that combination," Pardede said.
Second, Indonesia's annual economic growth must reach seven to eight percent year on year (yoy), meaning its productivity must increase up to three times.
The third effort concerns improving the quality of human resources, reforming the education sector to make it more egalitarian, focusing on a production-oriented education system instead of fulfilling basic education, and improving the health system.
The fourth relates to the family planning program to control the population size to reduce the mortality rate and improve the population age structure.
"We do not have many opportunities until 2035, if we go beyond that, it will be very difficult," he said.
"This is what Brazil and Thailand experience, who possibly will not escape the middle-income trap," he added.
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Translator: M Heriyanto, Fadhli Ruhman
Editor: Suharto
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