Airlangga Says Indonesia Must Be An Example Of Jakarta To Escape Middle Income Trap

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government was preparing various ways so that each region could escape the middle income trap.

Therefore, Airlangga revealed, if Indonesia wants to escape the middle income trap, it can see and imitate Jakarta to escape the middle-income trap.

"Indonesia's per capita income at the end of this year is around 5,000 US dollars, if we look at it per province Jakarta has passed the middle income trap, Jakarta has per capita income of 21,000 US dollars, so if Indonesia wants to pass the middle income trap, look at Jakarta," he explained in his speech Memorial Lecture: Remembering BJ Habibie's Vision, which was monitored online, Tuesday, July 23.

Airlangga conveyed that per capita income in Jakarta touched 21,000 US dollars.

This figure is above the middle class revenue range of 4,000 US dollars to 12,500 US dollars made by OECD.

In addition, Airlangga added that East Kalimantan and North Kalimantan also escaped the middle-income trap.

Therefore, this province can be used as an example so that other provinces in Indonesia can be separated from the middle income trap.

"So we can see that various provinces in Indonesia are examples of how other provinces should boost (the economy) nationally to pass the middle income trap," he said.

In addition to per capita income, Airlangga also conveyed the challenge of leaving the middle income trap that needs to be passed with economic growth in the range of 6 percent-7 percent and with an average investment growing 7 percent.

Mr. Prabowo, the president-elect, said that our economic growth could reach 8 percent in the third, fourth, and fifth year (leading). This is a challenge for all of us, then we too, the challenge of getting out of the middle income trap is 6 percent-7 percent going forward," he said.

Airlangga said that Indonesia's current population is 270 million people with a per capita income of around 5,000 US dollars.

Later, by 2045, with a population of 320 million people, Indonesia hopes that Indonesia's per capita income can reach 26,000 US dollars to 30,000 US dollars.

"The condition is that we must have a strong human resources, create a policy strategy. One of them is with three engines of growth," he added.