President Joko Widodo and the Local Governments of recipients of the best provincial and city awards in Indonesia at the opening of the 2020 Indonesian Development Planning Conference at the Shangri-La Hotel Jakarta, on Thursday (05/09). Photo by TheInsiderStories.

JAKARTA (TheInsiderStories) – Indonesia targets to become one of the developed countries by 2045 and the economic growth at 7.3 percent at the year, said a minister on Thursday (05/09). The vision makes Indonesia a high-income country with the fifth highest GDP in the world with an average economic growth rate of 5.5-6.0 percent up to 2025 and an average of 7.3 percent in 2045.

National Development Planning Minister Bambang Brodjonegoro said that in order to achieve these big goals, Indonesia must be able to plan sustainable development to create a superior nation in human, industrial, cultural, scientific and technological resources.

There are three scenarios for achieving economic growth in the next five years, namely a baseline level of 5.4 percent, a moderate level of 5.7 percent and a high scenario of 6 percent.

“The target is that in 2045 our economy will grow 7.3 percent,” he said at the opening of the 2020 Government Work Plan in Jakarta.

To achieve this vision, the government will improve the performance of economic sectors that make a major contribution to economic growth. At least there are three strategic steps that will be taken by the government, among others: first, improving the trade balance in the service sector which is still in deficit, such as the services of shipping vessels.

Second, boost the tourism sector to increase foreign exchange and foreign inflow into the country. In 2025, the government targets the number of foreign tourists to reach 25-30 million and as many as 73 million foreign tourists by 2045.

Third, diversify export-based production centers with more focus on the development of manufactured products than those that have continued to depend on natural resource products such as coal and petroleum. Strengthening manufacturing products in the food, textile, chemical, pharmaceutical and automotive products sectors will be the government’s main concern, he said.

Finally, the government will reduce the current account deficit (CAD), economic transformation in the fields of industry, agriculture and services.

Brodjonegoro added, in the past five years, national development has shown good progress amid global uncertainty. Poverty has decreased consistently and reached the lowest level, which was 9.66 percent in September 2018 and the unemployment rate also continued to decline, reaching 5.34 percent in August 2018.

The Minister stressed that Indonesia 2045 was the guideline of Indonesia’s development towards the golden peak of Indonesia, which was carried out through four main pillars. First, human development and mastery of science and technology which emphasized the acceleration of equitable public education, increased role of culture in development, increasing contribution of technology in development, improving the health status and quality of life of the people, as well as labor reform.

Second, sustainable economic development by emphasizing increased investment and foreign trade, acceleration of industry and tourism, maritime economic development, strengthening food security and improving farmers’ welfare, strengthening energy and water security, and commitment to the environment.

Third, equitable development by emphasizing the acceleration of poverty alleviation, equitable distribution of business opportunities and income, equitable development of the region, and the development of equitable and integrated infrastructure,

Finally, strengthening national resilience and governance by emphasizing substantive democracy, institutional and bureaucratic reform, strengthening national and anti-corruption legal systems, free active foreign policy, and strengthening resilience and security.

“With this agenda, in 2020-2024 economic growth is expected to increase to an average of 5.4-6.0 percent per year, the level of poverty, unemployment and inequality continues to decline, and people’s welfare continues to increase,” he said.

At the meeting, President Joko Widodo stressed that to become the fourth or fifth developed country in 2045 is not easy. Many things must be built and completed.

At least, there are three strategies to achieve the vision of an advanced Indonesia, namely, first, sustainable infrastructure development by involving more work by local governments.

“We have built a lot of infrastructure. Therefore, the local government task is to create connectivity to production centers in their respective regions,” he said on Thursday (05/09).

Second, structural reforms and the formation of government bureaucracies down to the regional level by abandoning old patterns and mentalities. In addition, local governments must be encouraged to simplify investment flows by facilitating licensing access and investing in export-based sectors and substitution of imported goods.

Third, the development of human resources. With the availability of a primary school graduate workforce of 51 percent, the government needs to encourage a re-schooling program for millions of people through training to be able to work in industrial sectors.

The President gave an example of the Philippines which has implemented the Business Process Outsourcing program, in which workers abroad can work for their country.

“Don’t get caught up in a routine budget without being involved in education. Vocational schools must have a link and match with the existing industry so that they are ready to work,” he said.

Written by Daniel Deha, Email: daniel@theinsiderstories.com