Indonesia Faces Transformation Challenge
Indonesia is facing a tough challenge in avoiding the middle-income trap amid an unstable growth cycle. The country’s economic fundamentals must be strengthened through transformation and sustainable growth.
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A number of residents and farmers held a flag ceremony celebrating the 75th Anniversary of the Republic of Indonesia in the rice fields in Grumbul Kalibacin, Mandirancan Village, Kebasen District, Banyumas Regency, Central Java, Monday (17/8/2020).
JAKARTA, KOMPAS - Indonesia is facing a tough challenge in avoiding the middle-income trap amid an unstable growth cycle. The country’s economic fundamentals must be strengthened through transformation and sustainable growth in the real sector.
The founder of the Institute for Development of Economics and Finance (Indef), Didin S Damanhuri, said in an economic discussion held by Indef and CNBC Indonesia in Jakarta on Tuesday that Indonesia’s economic growth cycle was not stable. After almost leaving the group of middle-income countries, Indonesia was hit hard by the 1997-1998 financial crisis. Now, when Indonesia is classified as an upper-middle-income country, there are some weaknesses regarding the transformation of the digital economy.