TEMPO.CO, Jakarta - Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto revealed the government's plan to increase per capita income above US$10,000 by 2030. This, he said, is in line with the government's vision of Golden Indonesia 2045.
The government wants Indonesia to become an advanced nation by 2045. Thus, by 2030 the government aims the nation to become a middle-income, escaping the middle-income trap.
"Indonesia plans to raise the GDP (gross domestic product), and the per capita income to above US$10,000 by 2030," Airlangga said at the HSBC Summit 2023 at the St. Regis, Jakarta on Wednesday, October 11.
He estimated that Indonesia's economic growth could be in the range of 5-5.5 percent. Thus, the per capita income in 2024 could reach US$5,500. "Today, our [per capita income] is US$4,700," said Airlangga.
To achieve a per capita income of US$10,000 or around Rp150 million per year, he said, the minimum income would be Rp10 million per month. Therefore, we must look for which industrial sectors are capable of paying their workers Rp10 million per month.
"We have to upgrade industries to a higher specification, or we must look for which industries that can upgrade basic industries," the Golkar Party chairman said.
For example, he said, textiles and footwear must be diverted to products that have higher value. "We have to move away from industries that can also be done by other countries such as Bangladesh and others. This is the target for the banking industry," he said.
Amelia Rahima Sari
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