World Bank: Indonesia's Economic Condition Is Quite Good
The Lead Economist of The World Bank (World Bank) Habib Rab stated that Indonesia's economic condition is quite good, because people's per capita income has shifted to the top compared to India, Nigeria, the Philippines, and Egypt, which are still middle.He discovered this condition after validating economic data through a meeting with business actors in East Java."Some of the points that we have put forward have indeed happened in the field. The point is, our analysis is already in the right direction," he said as quoted by Antara, Wednesday, May 1.The World Bank is conducting a comprehensive study of long-term economic growth in Indonesia, including in the private sector, including the manufacturing, services, and tax sectors."To encourage the exchange of productive ideas and gain valuable insight from the private sector, input from Kadin regarding this study is in accordance with reality or there are things that can be obtained as feedback to sharpen analysis and data," he said.According to Rab, it is important to continue consulting the private sector so that the analysis is more sharp so that the data does not only tell stories but also talk about the reality in the field."It's not just numbers but we can figure out what's behind it," he said.Meanwhile, Senior Economist of The World Bank Alexandre Hugo Laure assessed that although it was quite good, Indonesia's annual Gross Domestic Product (GDP) growth continued to slow down."The growth in the manufacturing sector is the main contributor to the Indonesian economy, for example, when compared to various countries, the growth is quite slow, losing to China, Mexico, Egypt, Nigeria, even with India," said Hugo Laure.Hugo explained, one of these was due to the lack of research and development as well as the low adaptation of technology and innovations carried out by large industries in Indonesia."The disbursement of research and development is fairly low compared to similar countries," he said.Expenditures for research and development carried out by the industry in Indonesia, he continued, were only around nine percent, far behind competitors."Only about five percent of companies introduce innovation, both product innovation or process. Adopting technology and energy efficiency is also very small in Indonesia and only a few companies adopt environmentally friendly management practices," he said.On the same occasion, Chairman of the East Java Chamber of Commerce and Industry Adik Dwi Putranto said that his party was committed to improving the quality of the domestic workforce through accelerating the implementation of education revitalization and vocational training.Through the Kadin Institute, he said, a number of efforts have been made, ranging from preparing workplace coaches, harmonization of the curriculum to labor certification to produce quality and competitive workers."The increase in performance can also be done by controlling the domestic market because overseas markets are currently slowing down," said Adik.However, Indonesia still has challenges through the e-commerce platform, according to him, transactions that occur between the two countries are no longer Business to Business (B to B) but the pattern has become Business to Consumer (B to C).
"With B to C, it seems as if Indonesia's imports are small but when it is realized, it turns out that the volume is so large that it hampers domestic products. Therefore, there must be a policy that is really pro against our domestic industry in order to reclaim the local market," he said.