Jakarta: Indonesia will need to clock an economic growth above the pre-pandemic level of five percent annually on average to become a developed nation in 2045, Deputy for Economic Affairs at the National Development Planning Ministry/National Development Planning Agency (Bappenas) Amalia Adininggar Widyasanti stated.
"To rise from this situation and get out of the middle income trap according to Indonesia's 2045 vision, recovery to the pre-pandemic scenario alone is not enough," Widyasanti noted at the "Indonesia Development Forum 2022" webinar on Wednesday.
In addition to intervening on the demand side by restoring the people's purchasing power through the distribution of social assistance, Indonesia should intercede on the production side by increasing sectoral and inter-sectoral productivity.
"The increase in productivity will contribute to lifting Indonesia's growth trajectory, so this must be achieved through economic transformation efforts," she remarked.
To this end, Widyasanti opined that Indonesia should develop the manufacturing sector, which in 2021 has the largest contribution to the Gross Domestic Product (GDP), with a growth of 3.4 percent year-on-year.
The growth was supported by several sub-sectors, such as the transportation equipment industry, machinery and equipment, and base metals.
"Development of the industrial sector is very important because the manufacturing industry has great leverage, absorbs a high and productive workforce, and can create a large screen effect within the framework of Indonesia's economic transformation," she stated.
Bappenas has organized the Indonesia Development Forum (IDF) 2022 that is expected to become a forum for discovering new ideas on industrial capacity in creating added value for natural and human resources.
The forum is also expected to offer insights to policy makers in responding to market developments and the global situation as well as rapid technological developments.
"The results of the 2022 IDF are expected to complement, strengthen, and increase the effectiveness of existing industrial development, so that they can encourage social and economic transformation in Indonesia in order to realize the vision of a developed, just, and prosperous country," she stated.