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JAKARTA - Indonesia's dream of becoming a developed country in 2045 requires major efforts. One of them in growing the economy every year.

According to the Deputy for Economic Affairs at the Ministry of National Planning and Development (PPN/Bappenas) Amalia Adininggar Widyasanti, the Indonesian economy needs to grow 5.7 percent per year so that Indonesia can become a developed country in 2045.

"Our exercise results show that if during 2022 to 2045 we can grow around 5.7 percent, then we can reach high-income countries in 2043," he said in the 2022 Indonesia Development Forum webinar quoted by Antara, Friday, June 10.

This means, he said, if Indonesia wants to become a developed country before 100 years of independence, economic growth must reach a minimum of 5.7 percent per year. "Growth of 5 percent per year for Indonesia is not enough to bring Indonesia into a developed country before 2045," he said.

For this reason, the government views Indonesia as requiring a processing industry development process by utilizing innovation and technology. In 2021 alone, the processing industry, which grew 3.39 percent year on year, became the largest contributor to economic growth, reaching 0.70 of the total economic growth throughout 2021 which was 3.69 percent.

"We need an ecosystem with conducive regulations, business opportunities to continue to grow and develop, the availability of sufficient resources, investment support and healthy businesses, and of course the availability of industrial human resources or talent," he said.

As for before the COVID-19 pandemic, Bappenas had estimated that Indonesia could get out of the middle-income country trap in 2036 with an economic growth of at least 5.7 percent per year since 2015.

It's just that Indonesia's target of becoming a high-income country by 2036 had to be delayed due to the spread of the COVID-19 pandemic which caused the economy to contract in 2020.


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