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Home National News Update

Economic transformation helps Indonesia reach high-income nation goal

by Hegi S. Al Qabid
6 September 2022
in National News Update
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Economic transformation helps Indonesia reach high-income nation goal
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IDNAround – The National Development and Planning Ministry has said that economic transformation is one strategy that could help Indonesia to move closer to its goal of becoming a high-income country by 2045.

“Our target in 2045 is that we will get out of the middle-income trap to (become a) high-income country,” head of planning at the ministry, Jadhie J. Ardajat, said at the ‘G20 3rd DWG Side Event: National Development Policymaking on Decarbonization,’ accessed from here on Monday.

On top of changing Indonesia’s middle-income situation to a high-income one, economic transformation could also push annual economic growth to 6 percent in the 2022–2045 period, he added.

Ardajat listed various strategies that have been formulated to achieve the long-term economic development commitment, which includes creating competitive human resources by improving the health and education systems, character building, and increasing research and innovation as a first measure.

Second, improving the productivity of various economic sectors, including pursuing industrialization, boosting the productivity of micro, small, and medium enterprises, and focusing on the modernization of agriculture.

Third, pursuing the green economy concept that encompasses a low-carbon, circular, and blue economy, as well as energy transition.

Fourth, aiming for digital transformation, which includes digital infrastructure, optimization of digital technology, and enabling factors.

Fifth, integrating the domestic economy, which includes infrastructure connectivity, Superhub, Seahub, and Airhub, and integrating domestic supply chains.

Sixth, developing the new capital Nusantara as a means to create new economic sources and balance the regional economy.

“This is an important strategy to attain an advanced Indonesian economy by 2045,” Ardajat said.

Besides pushing economic growth to 6 percent, economic transformation could also allow the eastern parts of Indonesia to contribute up to 25 percent to the national gross domestic product.

Related: Indonesia raises subsidized fuel prices 30 percent: Labor Party plans protests

Tags: Economic GoalEconomic transformationhigh-income nationIndonesia
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Hegi S. Al Qabid

Hegi S. Al Qabid

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