"History has shown that many countries have failed to upgrade themselves from the middle-class category to the high-income group. Indonesia must not become like them," he said at an alumni gathering of the Surabaya Institute of Technology here on Saturday.
"I am grateful that Indonesia has been able to become a middle-income country, with its per capita income at around US$3,500 a year. However, in order to become a major global economy, the country still needs to work harder," he added.
According to Chairul, Indonesia is in a transitional phase and has not consolidated its position as a middle-income country what with 38 percent of its workforce being still employed in the agricultural sector.
He pointed out that although agriculture absorbed up to 38 of the country`s workforce, the sector contributed only 15 percent to the country`s gross domestic product.
"This shows that poverty is concentrated in this sector," Chairul said.
On the other hand, he added, the industrial sector absorbed 13 percent of Indonesia`s workforce but contributed more than 27 percent to the national GDP.
"However, the financial services and property sectors that absorb only 2 percent of the national workforce contribute up to 7 percent to the GDP," Chairul stated.
"The relatively small contribution of the agricultural and industrial sectors to the GDP shows that Indonesia has not cemented its place even in the middle-income category," he explained.
Citing official data, Chairul said Indonesia continued to rely heavily on cheap labour and natural resources. Therefore, he added, the productivity of the country`s agricultural and industrial sectors was still low.
Chirul noted that the government must invest more in the field of science and technology in order to improve the productivity of the two sectors.
"With advanced technology, productivity in the agricultural and industrial sectors could be increased by 60 percent. That way, these sectors can contribute much more to the GDP," he said.
Chairul expressed optimism that Indonesia would become the world`s fifth largest economy by 2030.
(H-YH/INE/B003)
Editor: Suryanto
Copyright © ANTARA 2012
