Indonesia Poised to Become Upper-Middle Income Country: Sri Mulyani

Finance Minister Sri Mulyani Indrawati answers reporters’ questions after attending a Plenary Cabinet Meeting, at the President’s Office, Jakarta, Wednesday (6/3). (Photo by: Agung/PR)

To transform Indonesia from a middle-income country into an upper-middle income country, the Government has identified challenges that need to be anticipated, Minister of Finance Sri Mulyani Indrawati has said.

“[The challenges are] the development of human resources, which include the issues of education, health, social safety nets, and training for workers,” the Minister told reporters after attending a plenary cabinet meeting at the Presidential Office, Jakarta, Wednesday (6/3).

According to Sri Mulyani, those issues will be discussed in more details in the early stages (in the formulation of) the 2020 Government Work Plan (RKP). Nevertheless, those issues still serve as the direction of the RKP but have not been discussed in details yet.

As part of the development, what need to be done now is how to increase productivity, innovation, and competitiveness, she added. The Government, she added, also continues to evaluate development that it has implemented. In the manufacturing sector, for example, she said that in terms of productivity, innovation, and competitiveness, the Government evaluates how to improve the sector.

“So the RKP will also discuss measures to boost the role of the manufacturing sector to create a more balanced economic structure. It will also include the discussion about the balance of payments, external balance deficit, as well as our export and investment capacity,” she said.

The Minister went on to say the Government would also figure out how the State Budget can support these issues and help meet the challenges, adding that the demographic bonus challenges in 2020 deserve attention in relation to education and health sectors, as well as and providing trainings.

“So, this is still an initial discussion before we receive directives from the President, Vice President, and the Cabinet regarding what directives deserve attention in preparing Indonesia’s foundation in 2020,” said Sri Mulyani.

Regarding macro-economic assumptions in the 2020 State Budget, the Minister said it is still being discussed.

“In the next Cabinet Meeting, we will probably discuss this issue,” the Minister said.  (DNA/AGG/ES)

Translated by: Muhardi

Edited by: M. Ersan Pamungkas