Indonesia Will be World’s 4th Largest Economy by 2045, President Jokowi Says

President Jokowi and participants of 16th National Working Meeting of HIPMI sing national anthem Indonesia Raya at Ritz Carlton Hotel, Mega Kuningan, Jakarta, Monday (27/3). (Photo by: Public Relations Division/Oji)

President Joko “Jokowi” Widodo said he is upbeat that Indonesia will become the world’s fourth largest economy by 2045.

According to him, the prediction is based on calculations made by the Office of the Coordinating Economic Minister, the Finance Ministry, and the National Development Planning Board (Bappenas).

“I trust those calculations because they are world-class economists. I am not the one who did the calculations. Who doubts Sri Mulyani? Who doubts Darmin Nasution?“ the President said, referring to his finance minister and coordinating economic minister, respectively.

President Jokowi made the statement in his remarks at the opening of the 16^th National Working Meeting of the Indonesian Young Entrepreneur Association (HIPMI) and the launching of HIPMI Go to School program at Ritz Carlton Hotel in Jakarta, Monday (27/3)

Jokowi said his Cabinet’s calculations showed that by 2045, by which point Indonesia will have reached its 100^th year of independence, Indonesia will have a population of 309 million people, economic growth of 5-6 percent and Gross Domestic Product (GDP) of US$9.1 trillion, while Indonesia’s income per capita is expected to reach US29,000.

“This is a huge leap. But who will play a role? HIPMI. Mark my words. Happens or not, In shaa Allah it will happen,” the President said.

President Jokowi explained that there are three major steps the Government wishes to make.

First, as the foundation, the Government will build infrastructures and this is very important. At the first step, which is the next ten years, President Jokowi said that infrastructure development must be focused and finished because through infrastructure development, Indonesia can strengthen its competitiveness.

He added that logistics costs and transportation costs will be much lower, so the prices of the country’s products can compete with products from other countries.

The second stage, the President said, is to develop processing industries based on raw materials that the country has. President Jokowi also reminded that in the second 10 years, Indonesia must stop exporting raw materials. “We have to stop it. We must no longer export raw materials. At least we can import partially ready to use products. Better yet, we can push to import ready to use products. Palm oil for example, we must stop importing CPO later on. We have to stop it,” the President said.

At the third stage, the President added, Indonesia can begin to focus on developing service industries and although it is still 30 years to go, the President said, the move must begin from now. President Jokowi added that once the development of processing industries begins, the development of service industries must also begin.  He added that Indonesia’s strength lies in tourism industries.

“We have to encourage our youths to take part in this industry, which is a very promising industry. ‘Life style industries’ will also develop in our country. In addition, retail, media, culinary, and online store industries will also rapidly develop. And our youth can be part of the industries,” the President said.

However, President Jokowi reminded that in every segment, which is every 10 year, the development of human resources must not be ignored because Indonesia will enjoy a demographic bonus in 2030-2035 when 52 percent of the country’s population will be at a very productive age.

“If we can develop our human resources, our human resources will become our big strength. However, if we fail to do so, it will become a big burden for the state,” the President said, adding that whoever will become the President by then, human resources development is the key to ushering Indonesia to its Golden Era in 2045. (DND/OJI/ES) (EP/YM/Naster)