Indonesia Needs GDP Growth of 8 Percent to Become Developed Economy, Says Minister

JAKARTA, KOMPAS.com – Indonesia’s Finance Minister Sri Mulyani Indrawati said the country’s annual economic growth must be high to be sufficient for developed status.

It would require the economy to grow at least eight percent year-on-year (YoY) to avoid the middle-income trap status, Sri Mulyani said.

To do so, the minister added, Indonesia could learn from other countries, such as Singapore. The city-state had experienced a leap in its economy by keeping its growth of eight percent from 1971 to 1979. This was maintained until 1990 and Singapore managed to escape the middle-income trap.

Also read: Sri Mulyani: Indonesia Expected to Weather Out Coronavirus Pandemic in 2021

“Therefore, we should know what needs to be done in detail to overcome the problems that usually hinder the income of more developed countries,” Sri Mulyani said in a seminar titled “Golden Indonesia 2045: Escape from Middle Income Trap” on Friday.

She went on to say that the stability of the macroeconomic must be maintained consistently, although it is not an easy task to do.

Also read: Indonesian Economy Could Rebound to 6% in 2021 Under Certain Conditions

Things that need to be done are to improve the quality of human resources, to build more infrastructures, and simplify the bureaucracy to achieve the economic transformation.

“The challenge of managing the economy is not easy because the economy is nonlinear as if we are driving on toll roads,” she said, adding that there are many challenges that often occur including the previous hardships,” said the Minister.

(Editor : Erlangga Djumena)

Source: https://money.kompas.com/read/2020/11/27/111100826/sri-mulyani--perlu-pertumbuhan-ekonomi-8-persen-agar-indonesia-jadi-negara.