Jakarta (ANTARA) - The Ministry of National Development Planning (PPN) believes Indonesia must shift away from an economic growth model dependent on cheap labor and natural resources to avoid the middle-income trap.

At a joint conference with the Asian Development Bank Institute in Jakarta on Wednesday, Minister of PPN Rachmat Pambudy said the transformation requires a shift towards growth driven by high productivity, innovation, and institutional strengthening.

He also sees human resources quality improvement as crucial foundation for supporting this economic transformation.

"To improve the quality of human resources, we must enhance the quality of education, the health system, as well as strengthen social protection," Pambudy noted.

He further explained that a long-term development vision is not merely about forecasting future conditions, but about shaping the future a country seeks to create.

Therefore, development planning must be strengthened to enable the government to respond to short-term changes while anticipating emerging risks and opportunities.

According to him, the current development challenges are increasingly complex, ranging from climate change and human-caused disasters to unavoidable natural disasters.

The ministry, also known as National Development Planning Agency (Bappenas) also introduced the development of Bappenas Institute as a strategic platform to bridge knowledge with policymaking and development implementation, while simultaneously strengthening Bappenas' institutional capacity.

Pambudy said the institute will have three main functions: strategic policy intelligence, planning capacity development through a planning academy, and knowledge and policy collaboration.

He explained that the strategic policy intelligence function is intended to help the government identify changes early and develop policy options grounded in data and evidence.

Meanwhile, the planning academy will focus on strengthening planning capacity at both the national and regional levels.

Bappenas will also promote knowledge-sharing and collaboration among the government, universities, research institutions, local communities, the private sector, and development partners.

Pambudy conveyed that strengthening human resources and institutions is essential for Indonesia to raise productivity and achieve its long-term development goals toward Golden Indonesia 2045.



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Translator: Shofi Ayudiana, Resinta Sulistiyandari
Editor: M Razi Rahman
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