Inclusive Economic Growth Is The Key For The Republic Of Indonesia To Get Out Of The Middle Income Trap

BRI Chief Economist Anton Hendranata said that inclusive economic growth is one of the keys so that Indonesia can get out of the middle income trap.

"In the 2025 microfinance output, the theory of inclusive growth allows us to get out of the middle income trap," Anton said when met after attending the Hipka National Working Meeting entitled "The Role of Hipka in the Success of the Prabowo-Gibran Program Achieving 8 Percent Economic Growth" at the Borobudur Hotel, Jakarta, Wednesday, February 19.

Anton assessed that if the inclusive growth could not be carried out, it was feared that the government's target to achieve 8 percent economic growth would not be achieved.

"If that can't be done, I think it will be difficult to get to the 8 percent growth direction," he said.

He revealed that there are a number of efforts that can be made to achieve inclusive economic growth, such as encouraging higher credit growth in the banking sector than encouraging investment growth to job creation.

"And one thing to support there is that monetary policy and fiscal policy are needed. If the policy is partial, I think it will be difficult," said Anton.

According to Anton, BRI as one of the SOEs has launched programs that can encourage inclusive economic growth. One of them is by providing credit mostly to MSMEs.

"Essentially, what BRI is doing must encourage inclusive economic growth. What BRI has done is already programs that lead to the whole community and focus on MSMEs. Most of the credit is more than 80 percent to MSMEs," he said.

To note, in the last three decades since 1993, Indonesia has been classified as a middle-income country.

An acceleration of the source of economic growth is needed to encourage Indonesia to get out of the trap of middle-income traps.

Therefore, the Indonesian economy still needs to grow inclusively so that all levels of society can achieve prosperity.

Inclusive development is an integral part of the concept of the Economy of People in Indonesia, as stated in Article 33 of the 1945 Constitution (UUD).

The People's Economy has the main goal of realizing prosperity for all citizens through collective efforts to build an economic system based on the principle of kinship.

One of the inclusive economic development strategies is to optimize the role of Micro, Small and Medium Enterprises (MSMEs).