Sri Mulyani's Subordinate Is Optimistic That Indonesia's Per Capita Income Can Increase To USD 20.000 In The Next 25 Years

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara believes that Indonesia's per capita income in the next 25 years will increase by five times. This prediction is conveyed by looking at data on gross domestic growth (GDP) in the last 20 years.

"The Indonesian economy in the last 20 years has been extraordinary. Our per capita income has increased more than 5 times. If we work in the next 20 years as hard as we have worked in the last 20 years, we will progress," said the Deputy Minister of Finance online at the 2021 Incubation InFest. Mentor Session", quoted from the Ministry of Finance website, Tuesday, September 21.

The Deputy Minister of Finance explained that Indonesia's development began in the 1970s. Per capita income at that time was still very sloping, then slowly began to grow up. However, in 1998, Indonesia experienced another crisis and per capita income fell to 500 per capita US dollars.

After experiencing the crisis, Indonesia continues to rise and per capita income continues to increase. Even in 2019, Indonesia's per capita income has already passed USD 4.000 per capita.

"In 2019, we have passed USD 4.000 per capita. Due to COVID-19, we have decreased slightly by around USD 3.800 to 3.900 in 2020," said the Deputy Minister of Finance.

Assuming a five-fold increase in the next 25 years, the country's per capita income could reach around USD 20.000.

Furthermore, the Deputy Minister of Finance said that from 2000 to 2020, Indonesia's per capita income rose quite significantly, from around USD 700 per capita to USD 4.000 per capita or grew up to 5 times in 20 years.

"If we work that hard too, even more, hopefully, we will get 4-5 times the GDP per capita than it is now. If we start from 2021, we will add another 25 years, I believe Indonesia will become a developed country," he said.

Of course, the challenges that will be faced are no smaller or less. However, the Deputy Minister of Finance believes that Indonesia is able to face these challenges and is able to become a developed country. In this case, the financial sector will play an extremely important role.

"We have shown the potential of our country in the last 20 years. We must prepare this, including the financial sector. Our financial literacy must be better," said the Deputy Minister of Finance.