Jakarta (ANTARA) - Productivity and innovation are key aspects that can help Indonesia attain the status of a high-income country, Finance Minister Sri Mulyani Indrawati emphasized on Thursday.

She said that productivity is needed to generate more positive results from economic performance, while innovation is required to improve the quality of the economy.

"Becoming a high-income country is not a dream; it is a goal," she affirmed at the Indonesia-Europe Investment Summit 2023, which was followed online from Jakarta on Thursday.

To ensure that productivity and innovation help Indonesia attain the status of a developed country, both need to be supported by human resources, infrastructure, and technology, she said.

The minister stressed that human resources are essential to achieve the goal, and therefore, while designing policies, the government has been consistently placing social safety nets for human resources, health, and education.

Indonesia has also been consistent in allocating 20 percent of the state budget (APBN) for education.

As for infrastructure, she continued, it is highly essential because Indonesia is a very large archipelagic country, with the sea making up most of its territory rather than land.

In terms of technology, innovation through digital technology is considered necessary, especially in the manufacturing sector, which only contributed 20.5 percent to the gross domestic product (GDP) in 2020.

She underlined that transformation needs to be carried out in the sector because the manufacturing sector has high added value.

She said that Indonesia's economy is currently focusing on the service sector, which contributed 54.4 percent to the economy in 2020.

In fact, she noted, the service sector in the country is still informal with low added value.

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Translator: Agatha Olivia, Raka Adji
Editor: Azis Kurmala
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