Indonesia Is Already on the Right Track to Becoming a Developed Country

The Jakarta Mass Rapid Transit (MRT)

The Indonesian economy is relatively stable amidst global uncertainty. This shows a stronger power. Indonesia is even said to be on the right track to becoming a developed country.

This was conveyed by Nufransa Wira Sakti, Expert Staff to the Minister of Finance for Tax Oversight on the sidelines of the Annual International Forum on Economic Development and Public Policy (AIFED), Badung, Bali, Wednesday (7/12/2022).

He explained, “I am sure because we are on the right track, even though there is a Covid-19 pandemic,”

Indonesia’s opportunity to become a developed country and not be trapped in a middle-income trap is still wide open even though it has just been hit by the Covid-19 pandemic and next year’s world economy is predicted to worsen.

The Covid-19 pandemic that has hit Indonesia since March 2020 has pushed the economy to the brink of crisis. However, in the not-too-distant future, it can be controlled by the government and has been able to recover since mid-2021.

The Ministry of Finance noted that Indonesia’s economy in 2021 was 1.6% above its pre-pandemic position. Meanwhile in 2022, until the third quarter, the economy has managed to reach a level of 6.6% above 2019.

“I think we have passed the worst period and we remain optimistic and alert to face 2023,” he explained.

Next year, Indonesia will be faced with various external pressures. Among other things, the endless wars between Russia and Ukraine resulted in food and energy crises, soaring inflation, monetary policy tightening, and climate change.

In pumping the economy forward, the government has prepared a series of structural reforms.

Among other things, it is written in the Job Creation Law (UU), the Law on Harmonization of Tax Regulations (HPP), the Law on Financial Relations between the Central Government and Regional Governments (HKPD), and shortly, the Bill on the Development and Strengthening of the Financial Sector (PPSK) will be passed.

In addition, the APBN is designed to remain expansive with a more manageable deficit, which is below 3% of GDP. infrastructure development that was delayed will soon be accelerated. According to Nufransa, this will turn the wheels of the economy even though the world situation is deteriorating.

“We remain optimistic and alert to face 2023,” he explained.

Abdurohman, Acting Head of the Center for Macroeconomic Policy, Fiscal Policy Agency (BKF) said, it is feared that Indonesia will find it difficult to get out of the middle-income trap and become a developed country if it cannot properly manage its demographic bonus.

Therefore, 10 years ago, a series of plans were drawn up which were then implemented during the era of President Joko Widodo (Jokowi). Is the improvement of the quality of human resources (HR), infrastructure development, and industrial downstream.