Good News From Airlangga: Indonesia Exits Middle Income Trap Towards Developed Countries This Can Happen This Way

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Of the Coordinating Ministry for the Economy)

JAKARTA - The government through the Ministry of Economic Affairs is targeting the digital industry to encourage the realization of Indonesia's aspirations to become a developed country by 2045.

Coordinating Minister for the Economy Airlangga Hartarto said companies engaged in the digital sector could continue to support domestic economic development so that they would be free from the trap of the middle class in the next twenty years.

"One of Indonesia's targets in 2045 is to escape the middle income trap with an average GDP (gross domestic product) that must be above US $ 10,000," he said in a press statement as quoted by the official website, Thursday, May 27.

Airlangga added, the use of the digital sector can be more optimal if it is supported by several things, such as the availability of digital talent, improving service quality, and expanding job opportunities for the community.

"Do not forget to also make efforts to increase financial inclusion and digital payment systems so that they have an increasingly impact on the economy," he said.

He said this was in line with the development of digital human resource competencies proclaimed by President Joko Widodo with the Indonesian slogan "Increasingly Capable of Digital".

"This movement is expected to be able to encourage various initiatives in other places, to carry out concrete works in the community to be more competent in using the internet for educational and productive activities," said Airlangga.

Quoting data released by Bank Indonesia (BI), it is stated that the growth of digital economic and financial transactions is getting higher along with the increasing expectations and preferences of the public for online shopping.

For example, the value of electronic money transactions in April 2021 reached IDR 22.8 trillion, or grew 30.17 percent year-on-year (yoy).

Then, the volume of digital banking transactions also continues to increase, where in April 2021 it grew 60.27 percent yoy by 572.8 million transactions with the value of digital banking transactions growing 46.36 percent yoy to reach Rp3,114.1 trillion.

Meanwhile, the use of ATM cards, debit cards and credit cards in April 2021 was recorded at Rp. 679.6 trillion, growing 33.13 percent yoy in line with the increase in economic activity and people's needs during Ramadan and ahead of this year's Eid Al-Fitr.