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Economy Minister: Next 10-15 years crucial for Indonesia to be developed country

Tempo - May 8, 2023

Riani Sanusi Putri, Jakarta – Coordinating Minister for Economy Airlangga Hartarto has again highlighted Indonesia's target to become a developed country by 2045. To achieve this target, Airlangga emphasized that the demographic bonus expected to last until 2039 must be maximized.

"We have to remember that the next 10 to 13 years are a very important momentum for Indonesia because the momentum of demographic bonus only lasts until 2039," Airlangga said at the opening of the Indonesian Digital Finance Festival at the Jakarta Convention Center on Monday, May 8, 2023.

Airlangga explained that if Indonesia wanted to escape the category of middle-class countries, it must increase its income at least by three times. At present, the country's GDP per capita is only around US$4,000 or Rp1.5 trillion.

To become a developed country, Indonesia's GDP per capita must be boosted to US$12,000 by 2035. If this figure can be achieved, the national economy will soar from Rp1.5 trillion to around Rp4 to 4.5 trillion. This means, Airlangga said, Indonesia could become the 7th country with the highest economy in the world.

Based on this data, the Coordinating Minister underlined that the domestic market is a vital factor and that digitalization is one of Indonesia's backbones. The digital economy does not only serve as a buffer but an accelerator of economic growth.

Airlangga further expressed his optimism that Indonesia could achieve its target as a developed country given its economic growth at an extraordinary pace. Indonesia's economic development in the first quarter of 2023 even exceeded that of developed countries.

Source: https://en.tempo.co/read/1723273/economy-minister-next-10-15-years-crucial-for-indonesia-to-be-developed-countr