JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati said increasing competitiveness and productivity is an important key to getting Indonesia out of the middle-income trap.
"Ciri from countries that can get out of the middle-income trap is that they can definitely build the country's competitiveness and productivity. That means they can produce, can sell to the world market," Sri Mulyani said in an official statement, quoted from Antara, Friday, September 15.
According to the Minister of Finance, productivity and competitiveness are manifested in export and import transactions, both services and goods.
That way, the attraction to get out of the middle-income trap does not only come from the domestic economy but also utilizes the global economy.
The State Treasurer added that another characteristic of developed countries is that it can suppress corruption so that it does not become a factor of erosion that paralyzes the country. He believes that a successful country is able to reduce the level of corruption and illegal activities.
Furthermore, Sri Mulyani said that not all countries in world history are able to continue to become developed countries. Of the total around 197 countries in the world, the majority are in the low or middle income group of countries.
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"There was only a few in the World Bank study where at that time I was managing director of operations no more than maybe 20 countries or even smaller, 15 countries that could be separated from the middle-income trap to high-income country," said the Minister.
Therefore, in order to support export-import services, the Ministry of Finance continues to innovate through the implementation of CEISA 4.0 in order to reduce dwelling time. The establishment of the National Single Window Institute is also carried out to integrate business processes.
In addition, the Directorate General of Taxes (DJP) is also building a Core Tax system to provide certainty for better and more efficient tax services.
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