Politics of Innovation

Recent public discourse frequently deals with complaints about prosperity constraints caused by the symptoms of de-industrialization, trade and payment deficits, the middle income trap and the extractive economic trap.

KOMPAS/RADITYA HELABUMI

Yudi Latif

Recent public discourse, including a speech by President Joko "Jokowi" Widodo, frequently deals with complaints about prosperity constraints caused by the symptoms of de-industrialization, trade and payment deficits, the middle income trap and the extractive economic trap.

However, there has been almost no political effort or strategic policy to transform the economy toward prosperity that continues to increase in a sustainable and inclusive way. To overcome the various problems, Indonesia must transform itself from an extractive-based economy, traditional agriculture and conventional manufacturing to a knowledge-based economy.