Domestic and Global Economic Integration: Strategies to Boost Indonesia’s Economic Growth
Indonesia’s economy faces complex challenges amidst changing global dynamics. To boost economic growth, it is important for Indonesia to be domestically integrated and connected to international markets.
This requires a strategy that includes spreading development, developing human resources, and improving quality infrastructure.
One of the first steps that must be taken is to spread economic development across various regions. So far, economic growth tends to be centred in a few regions, such as Java. Therefore, it is important to develop new growth centres in other regions to make economic growth more equitable.
This can be achieved through investment in infrastructure and public services that support economic activity.
The development of new growth centres should also be supported by improving the quality of human resources. Proper education and training will ensure that the workforce is ready to face the challenges of globalisation.
With quality human resources, Indonesia can increase productivity and competitiveness in the international market. This includes technical, managerial skills, as well as the ability to adapt to new technologies.
Quality and integrated infrastructure is also very important to encourage connectivity between regions. Strengthening connectivity integration, both intra- and inter-regional economic growth, should be prioritised.
Efficient development of roads, bridges, ports and airports will facilitate the mobility of goods and services, accelerate distribution and reduce logistics costs. Good connectivity will also attract investment, both domestic and foreign.
To create a competitive advantage, there is a need to strengthen the competitiveness of existing growth centres, such as Industrial Estates (KI) and Special Economic Zones (SEZ). The development of Free Trade Areas and Free Ports (KPBPB) is also an important strategy in attracting investment and increasing trade volume.
In addition, National Tourism Strategic Areas (KSPN) can be developed to capitalise on existing tourism potential, create new jobs, and increase regional income.
Domestic and global economic integration is key to boosting Indonesia’s economic growth. Through equitable distribution of development, improving the quality of human resources, developing quality infrastructure, and strengthening the competitiveness of growth centres,
Source: Bappenas
