Tuesday, April 16, 2024 | 15:45 WIB

Indonesia’s 3 Presidential hopefuls Plan to Shape the Nation’s Future Exit from the Middle Income Trap

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Jakarta, IO – When taking into consideration the amendments to the Constitution of the Republic of Indonesia, it is important to learn from previous experiences. When 1945 rolled around, Indonesia did not yet have any long-term development direction in the form of Garis Garis Besar Haluan Negara-GBHN (Broad guidelines of state policy) that is co-dominated, diverse partitions of songs, and different musical instruments reading the same partitions, which resulted in the production of songs that sound harmonic and smooth. It should come as no surprise that the leadership of the music conductor is an essential factor in the process of translating the partitions of the song into a series of different musical instruments. 

In point of fact, the election title that determines who will be the head of state places the ability of leadership in interpreting the score into a range of distinctions that exist between the people – in terms of their socioeconomic situations, spatial conditions, and sectoral conditions. As a result of the creation of Law No. 25 of 2004, on the National Development Planning System and Act No. 17 of 2007, on the Long-term 2005- 2025 National Development Plan, it was discovered that these two pieces of legislation were not executed as effectively as they should have been, in order to replicate the function of GBHN in the past. 

Consequently, the vision of the Head of State’s mission in each election title only lasts for a period of five to ten years, at most. At the very least, a State Leader who possesses a comprehensive and unmistakable vision for the state as well as a work program that can be quantified can be utilized as a State Directive to be put into action as a guideline for the preservation of social, national, and national life, as well as a direction for the implementation of comprehensive, directed, integrated, and sustainable development. 

The global pandemic has resulted in production shortages in Indonesia; thus, the country must devise a strategy to deal with the economic issue. Indonesia must avoid the Middle-Income Trap, which occurs when a country achieves middle-income status but is unable to move beyond it to become a developed country. 

As the Economist Intelligence Unit reported in Asia Outlook 2024 (Figure 1 as below), this outlook optimistically reflects Indonesian GDP per PPP stable growth within the past 10 years of 3.5% – 5%. This steady growth is anticipated to continue, with the accelerated expansion of natural resources, particularly new renewable energy sources. 

ASEAN members are likely to assume a more significant role as industrial centers. The green sector presents a promising opportunity, since there is significant worldwide investor interest in identifying places other than China that can effectively manufacture solar panels, lithium batteries, and electric vehicles (EVs), which are essential for the energy transition. 

Various research institutions projected Indonesia as aiming to become a high-income country by 2025-2045, with a growth range of 5%-8%, a per capita income of USD14,000, and a Gini Ratio that is below 0.33 (exiting the middle-income trap and becoming a high-income country). (FIGURE-1) 

In accordance with the economic mainstreaming of Ganjar Pranowo is Menuju Indonesia Unggul: “Rapid Movement to Create a Fair and Sustainable Maritime State”. This idea is outlined in eight mission points, two of which contain words directly related to economics. The third mission is to accelerate the development of a knowledge-based and value-added economy. As he possesses a Marhaenist mindset (Marhaenism is a variant of Marxism but emphasizes national unity, culture, collectivist economics, and democratic rights and condemns liberalism and individualism), on the contrary, he affirms that the creative economy will become one of the country’s potential commodities. 

Whether it be in the music industry or the film industry, this is what he was going to create, in a capital-intensive manner, so that direct access to financial resources should be in place. A collaborative effort between KADIN and the supplier to make access to KUR easier is the experience that was gained in Central Java. UMKM owners face challenges as a result of the high borrowing rates offered by banks. We were able to make KUR with an interest rate of 7%, which led National KUR to bring its interest rate down to 7% or even 6%. Along with that, it is essential that you accompany him to the lesson. We also ‘terror’ ambassadors in order to assist them in promoting UMKM to the foreign market on their behalf. 

The fact that it has the potential to become one of the sources of green economic growth is another way in which it contributes to the process of sustainable development. How important it is to have a free and fast internet connection as a supporting infrastructure is going to be underlined. Furthermore, we promote the establishment of creative hubs in order to facilitate cooperation amongst creative economists. For the purpose of assisting our creative economy, our ambassadors are also armed. Additionally, there has been an increase in research and development. We constructed an anchor out of coal and palm, which are Indonesia’s main two commodities. As a result of the high demand for nickel, the market is open. An investment must be initiated as soon as possible, and partners for collaboration must be found. 

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