"The key to bringing Indonesia to achieve the 2045 target for developed countries is structural transformation. If this is done, the potential for Indonesia's economic growth of above five percent per year will be realized," Pardede stated when contacted here on Tuesday.
He said this potential was related to the development of Indonesia's economy that grew 4.94 percent in the third quarter of 2023 as per data released by Statistics Indonesia (BPS) on Monday (Nov 6).
Pardede noted that accelerating structural transformation, which includes changing the traditional economic structure with low productivity to high productivity, is important to achieve the goal of economic growth.
Transformation can be conducted through support of the application of modern technology, infrastructure development, as well as policy orientation and others.
Pardede said from the domestic side, various forms of improvement have continued to be made, so that the Indonesian economy is on the right path.
However, global economic conditions are increasingly integrated, so the phenomenon of volatility, uncertainty, complexity and ambiguity (VUCA) also often occurred.
"Therefore, the government should not only focus on growth but must also focus on stability," he stated.
Pardede said that structural transformation was increasingly important in order to deal with the VUCA phenomenon.
He also highlighted that Indonesia has opportunities owing to the demographic bonus. Hence, if this transformation can be achieved with an educated workforce, the impact will be sufficient to drive economic growth.
Meanwhile, from the domestic side, the challenge faced is the sustainability of structural transformation policies since from the political side, there is a tendency to adopt short-term policies.
"Structural transformation cannot be carried out in the short term. In fact, this is quite important to provide a foundation for the future, so that the economy can be accelerated," the economist remarked.
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Translator: Aloysius Lewokeda, Katriana
Editor: Azis Kurmala
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