Fulfilling these requirements, Indonesia could be a developed country before 2045

JAKARTA, KOMPAS.com – The Minister of National Development Planning / Head of Bappenas, Suharso Monoarfa, said that Indonesia could become a developed country before 2045.

However, the condition is that Indonesia must at least record an average economic growth of 6 percent per year. This cannot be separated from the Covid-19 pandemic.

Because before the pandemic, the government had calculated that Indonesia needed to grow an average of 5.7 percent per year and a GDP per capita of 5 percent to get out of middle income country in 2036 and become a developed country before 2045.

“Indonesia needs an average growth of 6 percent to bring Indonesia to become a developed country, and to be separated from it middle income trap before 2045, “said Suharso at the opening of the 2021 National Development Planning Conference (Musrenbangnas), Tuesday (4/4/2021).

Suharso said, the pandemic even threatened Indonesia to fall again into a lower middle income country.

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Whereas previously, Indonesia was able to win the category of upper middle income countries (upper middle income) in 2019.

“The economic contraction experienced in 2020 poses a risk for Indonesia to fall into the category lower middle income, “he said.

As for realizing economic growth, Indonesia needs to carry out economic transformation. Suharso revealed that the transformation must be carried out in the medium and long term.

Transformation requires adjustments in the country’s development plans, including redesigning Indonesia’s economic transformation strategy.

Because if without a re-design and economic growth averaging only 5 percent, then by 2045 Indonesia will not be out of the way middle income trap.

“Economic transformation is carried out by two main strategies, namely changing the structure of the economy from lower productivity to higher productivity sectors and increase the priority of each sector, “concluded Suharso.

Also read: Due to the pandemic, Indonesia is threatened with turning back to become a low middle income country

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