Economic Transformation Becomes The Main Capital To Achieve The Vision Of Advanced Indonesia 2045

Illustration. Doc. VOI

Head of the State Budget Policy Center of the Fiscal Policy Agency (BKF) of the Ministry of Finance Wahyu Utomo said the acceleration of economic transformation was the capital to achieve the 2045 Advanced Indonesia Vision.

"One of the requirements for advancing Indonesia is to get out of the middle income trap, the way is to accelerate economic transformation," Wahyu said in a virtual talk show on the 2024 State Budget Draft in Jakarta, quoted from Antara, Thursday, September 21.

To achieve the Vision of Advanced Indonesia 2045, an average economic growth of more than 6-7 percent is needed. By 2045, Indonesia's Gross National Revenue (GNI) per capita is targeted at more than 25,000 US dollars. Therefore, it needs economic transformation.

Economic transformation means changing from low productivity to high productivity, from low added economic activity to high added economic activity, realizing environmental management to more environmentally friendly and clean, and changing the economic base from narrow to board-based and inclusive.

For this reason, there is a short-term and medium-long-term strategy to realize economic transformation. The short-term strategy aims to strengthen the foundation so that Indonesia has a strong cushion for jumping. Meanwhile, for the medium-long term, there must be a leap or breakthrough for economic transformation.

In a short-term strategy, one of the focuses is controlling inflation because with controlled inflation, economic stability can be maintained. This strategy also includes the elimination of extreme poverty, decreased prevalence of stunting and increased investment through various fiscal instruments and regulations, and simplification of regulations.

For the medium-long term strategy, one of the focuses is to strengthen human resources (HR) to be superior through education, health and social protection to create innovative, productive and prosperous human resources.

"Why is it important that HR is superior earlier? Because human resources are the dynamicator factor that can change for us to transform," said Wahyu.

These strategies also include strengthening infrastructure and institutional reforms including regulatory and bureaucratic reform. Infrastructure acts as an accelerator that accelerates the economy such as information and communication technology infrastructure and connectivity to facilitate mobility.

Meanwhile, economist who is also the Executive Director of the Segara Research Institute, Piter Abdullah said that achieving the 2045 Advanced Indonesia Vision requires economic growth that exceeds five percent.

"All of our potentials are to support us to achieve gold Indonesia by 2045, but if we continue to grow by five percent, God willing, we will not arrive," he said.

This is because it requires leaps and extraordinary efforts to achieve this vision, among others, must increase per capita income more than three times.

"We jumped to a higher one. Our efforts are far from extraordinary. For that, if we only have five percent, it is impossible for us to achieve it," he said.