Sri Mulyani Explains How To Avoid The Middle Income Trap With This Strategy To Be Able To Be A High Income Country In The Future

Minister of Finance Sri Mulyani. (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani stressed the importance of open thinking and the right strategy so that Indonesia is not trapped in the middle income trap and is able to become a high income country.

According to him, reforms in the fields of health and education are important to build superior quality human resources.

"I would like to invite those present today, let's face the pandemic and observe how to build a good health system in Indonesia," he said in a webinar today, Friday, August 20.

The Minister of Finance added, just like the health sector, education is also another very crucial aspect. He said, reform in the world of education is very important, supported by the use of technology.

"So how do we design education? Technology becomes important again especially in a pandemic situation where our children can't study in class for a year and a half. I hope this will be a thought, because children who are currently facing a pandemic, they are the ones who will be millennials when Indonesia celebrates 100 years of independence," he said.

The second aspect to avoid the middle income trap is the social safety net. The Minister of Finance said that in developed countries the design of social safety nets can ensure that the country can develop but also ensures that no part of the population is left behind. The social safety net is to keep the social community moving forward together in a fair but competitive manner.

“This is something we need to think about. The government is currently thinking about reforming the social safety net. How to provide assistance without making them feel that they have entitlement, how we can help their families and children who are left behind but at the same time provide reinforcement, and how subsidies in Indonesia must be reformed in order to achieve the targets and targets," explained the Minister of Finance.

Economic transformation is the third aspect to avoid the middle income trap. The transformation of the manufacturing sector, strengthening of Indonesia's economic structure which is dominated by MSMEs so that it can become a source of strength.

"The fourth is a good institution," he said.

Menkeu mentioned that an institution that is able to provide good services and is free from corruption is an important thing for the development of the country. The Minister of Finance said that Indonesia continues to improve by carrying out a series of transformation programs and bureaucratic reforms.

"So, I hope that all ranks of millennials who now definitely have aspirations will later celebrate Indonesia's 100th year of independence, you will participate. Learn from the situation and contribute ideas to be able to build a better Indonesia," concluded Minister of Finance Sri Mulyani.