Growth Diagnostics
Whoever the president is, we will face the same challenge, namely how to get out of the middle-income country trap. Therefore, strategies, policies and work programs need to be sustainable.
A Prasetyantoko
Last weekend, Statistics Indonesia (BPS) announced that the country’s economy grew 5.03 percent in the first quarter of 2023, higher than many economic observers’ estimates of 4.5-4.8 percent. Even though it was higher than expected, some questioned why economic growth could not be higher than around 5 percent. To get out of the middle-income trap, growth of at least 7 percent is needed in the years to come.
In the midst of a global situation of low growth or “slowbalization”, 5 percent growth is quite good. The problem is, good is not enough. A leap is needed so that Indonesia can become a developed country and the people's welfare can improve in time.