The government trying to avoid middle income trap
JAKARTA - The government hopes to achieve economic growth in the range of 6% -7% by 2022, in order to get out of the middle income trap. This was conveyed by Suharso Monoarfa, Minister of National Development Planning (PPN)/ Head of the National Development Planning Agency (Bappenas), in Jakarta, Wednesday (17/3).
According to him, if economic growth was around 5%, it would be difficult for Indonesia to get out from the middle income trap before 2045. The current unemployment rate, he added, would not be able to return the conditions as before COVID-19 pandemic.
The impact of the pandemic caused gross domestic product (GDP) to fall to USD 3,911.72 per capita in 2020, from USD 4,174.53 per capita in 2019. Meanwhile, gross national income (GNI) fell to USD 3,806.37 per capita in 2020, from USD 4,047.62 per capita in 2019.
Monoarfa stated that the decline potentially putting Indonesia's status back into a middle-low income country. (LK/VA)