Indonesia Targets Income per Capita US$31.000 in 2045
The Indonesian government is targeting national income per capita US$31.000 in 2045. Currently the country’ income per capita only $3.800.
Minister of Industry Airlangga Hartarto believed this target could be achieve, if Indonesia applies industry 4.0 caused He believed that the program has the potential to boost national economic growth significantly.
Hartato said, “The demographic bonus is a momentum for us, because other countries such as Japan, Singapore and Korea have already passed the opportunity. If the bonus demography has been passed, we will only be burdened by higher social costs.”
He compares with Australia, which already has a income per capita of $51.000, but Indonesia’ demographic has 10 times more potential, so according to him, Indonesia’s economic potential will grow 10-fold.
In line with that, President Joko Widodo stressed the importance of the continuation of the stages of Indonesia’ technocratic work amid the dynamics of the world economy, both related to the normalization of monetary policy in the United States, fluctuations in commodity prices, trade wars and protectionism, moderating growth in China, and security and world geopolitics.
To maintain the momentum of the economy’ positive growth performance, Widodo stressed that it is necessary to create innovation, work partnerships with the private sector, especially through increased investment and exports.
“Various reforms to increase investment and exports must continue to be rolled out to strengthen the trust of business people, in order to create maximum benefits, open jobs, and overcome unemployment,” he said at the plenary meeting yesterday (03/06).
Meanwhile, Finance Minister Sri Mulyani Indrawati stressed that the government wanted to abandon the level of being a middle income country as a middle income upper country through the development of human resources.
“Human resource development starts from education, health, social safety nets, including training of workers,” she said at the President Office.
According to her, Indonesia is still continuing its development to increase productivity, innovation and competitiveness. Especially to see the role of the manufacturing sector to create a more balanced economic structure in terms of balance of payments, external balance deficits, and also in terms of the ability to export and invest.