Economic Transformation for a Golden Indonesia 2045
Indonesia, as one of the transforming developing countries, has a grand vision to achieve developed country status by 2045. In order to realise this ambition, the government has formulated strategic goals that are summarised in the National Long-Term Development Plan (RPJPN) 2025-2045.
These five goals include (1) Per capita income on par with developed countries; (2) Poverty towards 0% and inequality reduced; (3) Leadership and influence in the international community increased; (4) Competitiveness of human capital increased; (5) Greenhouse gas emissions decreased towards net zero emission.
To achieve these goals, reform alone is not enough. Indonesia needs deep transformation in various sectors, ranging from economic, social, to governance.
Economic transformation is the most vital aspect in the journey towards Advanced Indonesia 2045. This is because major changes in the country’s economic structure will be the main pillar to improve competitiveness and ensure inclusive and sustainable economic growth.
One of the main focuses in Indonesia’s economic transformation is the shift from a natural resource commodity-based economy with low added value, to a knowledge and technology-based economy with high added value.
For this reason, Indonesia needs to utilise the potential of technology and innovation as a key factor in driving economic productivity and efficiency.
Knowledge-based sectors, such as information technology, advanced manufacturing, and research and development, must be strengthened so that Indonesia does not fall into the middle-income trap, which often prevents developing countries from jumping to the next stage of their economic development.
Achieving this economic transformation requires policies that favour the development of strategic sectors, such as manufacturing and agriculture. Indonesia also needs to adopt green, blue and circular economy principles to preserve the environment while promoting sustainable economic growth.
Investment in research, technology and innovation is crucial to accelerate this process. By developing a sustainable economy, Indonesia is expected to create more and better-quality jobs, reduce economic inequality, and promote people’s welfare.
Not only that, a successful economic transformation will also have a positive impact on social resilience and people’s quality of life. By equalising access to economic opportunities and strengthening the competitiveness of human resources, Indonesia will be able to significantly reduce poverty and reduce social inequality.
This will create a more prosperous and just society, with more equitable access to education, health, and business opportunities.
Source Bappenas
