Airlangga Kasih Bocoran Indonesia Will Become A Developed Country, This Is The Cause

Coordinating Minister for Economic Affairs Airlangga Hartarto. (DOC. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto said that in 2035, Indonesia is projected to start enjoying the peak of the demographic bonus.

Indonesia has targeted the achievement of per capita income to be equivalent to developed countries of around US$23,000 to US$30,000 by 2045. The journey to a demographic bonus certainly coincides with an increase in the number of urban populations in Indonesia to 60 percent of the total population.

Airlangga said this also makes the expansion and improvement of transportation infrastructure must be carried out in Indonesia. With better connectivity, it will help encourage the creation of an economy in new areas, as well as increase the mobility of people and goods.

Meanwhile, several infrastructure projects, including in the transportation sector, are already included in the National Strategic Project List (PSN). To accelerate the development of various PSNs, investment is needed which is not small and cannot depend solely on the APBN or APBD.

"Currently, the Government has drafted regulations for non-APBN financing schemes such as Limited Concession Scheme and Land Value Capture to meet future infrastructure investments," said Airlangga in his official statement, Saturday, November 25.

Airlangga explained that in the last 8 years there were 173 PSNs that had been operated with an investment value of Rp1,442.3 trillion. The realized infrastructure project will have a significant impact on creating strong connectivity, so as to be able to channel the economy from the center to the regions, and produce even positive effects throughout Indonesia.

"We need to maintain this momentum and continue with PSN," added Coordinating Minister Airlangga.

The Committee for the Acceleration of Priority Infrastructure Provision (KPPIP), which acts as a coordinating unit for the completion of all PSN in Indonesia, is currently in the process of compiling a study on the economic impacts produced by the development of PSN infrastructure and its impact on the independence of various regions in Indonesia.

In addition, the Coordinating Minister for Economic Affairs Regulation Number 8 of 2023 has also been released concerning Changes to the PSN List, which currently includes 204 projects and 13 programs.

Airlangga said that in the future digital infrastructure will be one of the main focuses. ASEAN's digital economy potential is estimated to have a value of 330 billion US dollars by 2025 and will increase to 1 trillion dollars by 2030.

"Where a third comes from Indonesia. This figure will even increase with the Digital Economic Agreement Framework (DEFA) scheme," he said.

This digital infrastructure will support the Industry 4.0 era, which is marked by the integration of digital technology, automation, and artificial intelligence.

The government has launched "Making Indonesia 4.0" as a roadmap to accelerate the adoption of technology in key industries such as food and beverage, textiles, automotives, electronics, and chemicals. This initiative aims to increase industrial productivity by 21 percent to 26 percent of GDP by 2030.

In addition, Airlangga said the policy of downstreaming Indonesia's natural resource commodities was also continuously encouraged to gain added value and economic resilience, as well as support the green economy.

"So, in the future, the government will continue to provide industrial infrastructure or the development of adequate Industrial Estates or Special Economic Zones, and create a conducive industrial business environment," said Airlangga.

The progress of the industrial sector is certainly one of the things that will help increase the entry of investment into Indonesia. The realization of investment in the third quarter of 2023 increased compared to the same quarter last year, which was 21.6 percent, with total investment reaching IDR 374.4 trillion.

"The Indonesian government will consistently maintain the value of investment realization per year, focusing on strategic sectors such as renewable energy, technology, and manufacturing," said Coordinating Minister Airlangga.

Deputy for Regional Development and Spatial Planning Coordination of the Coordinating Ministry for the Economy who is also the Chief Executive of KPPIP Wahyu Utomo said that all Indonesians must continue to work hard to ensure that the benefits of all these projects are felt by all levels of society and to ensure that the vision of Indonesia Gold 2045 can be achieved.

"We also want to highly appreciate the collaboration of KPPIP members who have consistently succeeded in solving problems and accelerating the implementation of PSN. We hope this collaboration can continue in the future," he concluded.