Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati emphasized that productivity is of utmost importance for Indonesia to avoid the middle-income trap.

Indrawati made the statement at a public lecture titled "Fiscal Policy amidst Global Uncertainty" held at the Diponegoro University (Undip) campus, Semarang, Central Java, on Monday.

"We want Indonesia to avoid the middle-income trap. Thus, productivity is the most important thing. A country cannot grow only by increasing consumption without creating productivity," she noted as per a written statement received on Monday.

The minister affirmed that the government continues to make efforts to allocate budget for the education and health sectors that are closely related to productivity.

For instance, smart human resources are created through education. When students continue to learn, think critically, and become skilled human beings, Indonesia can continue to move forward.

"Thus, this is a form of investment. Education, health, and social safety nets are important because people are the key," she remarked.

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Nevertheless, Indrawati also underlined the importance of infrastructure development in supporting productivity. Inadequate infrastructure can hinder a person's productivity.

Hence, infrastructure development is one of the government's approaches to boost the country's productivity.

Furthermore, the minister stated that government bureaucracy and regulations are essential factors to prevent hindrances.

"It is also not good if the governance does not run. Bureaucracy is important, so that it does not become an inhibiting factor. Regulation is essential," she remarked.

Monday's public lecture was attended by academics from Undip and Semarang State University (Unnes).

On that occasion, Minister Indrawati also inaugurated the Finance Ministry Corner, which is a state finance education space for academics as a reference, data, and information facility as well as a means for academic consultation with representatives from the Ministry of Finance.

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Translator: Imamatul Silfia, Raka Adji
Editor: Yuni Arisandy Sinaga
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