Golden Indonesia 2045: Brief Overview
Indonesia is projected to be the 4th biggest economy in the world by 2045 due to the demographic bonus (the number of productive age groups encompasses the non-productive) that will occur around 2030; this phenomenon will culminate in what will be called Golden Indonesia 2045.
Bappenas (The Ministry of National Development Planning) estimated that by that year, the country’s annual income per capita would reach Rp. 345jt, significantly higher than the estimated amount of Rp. 52jt in 2022. Golden Indonesia 2045 has Four main pillars: 1) Human development and the mastery of science and technology; 2) Sustainable economic development; 3) Equitable development; and 4) Strengthening national resilience and governance. These pillars are necessary to achieve the nation’s target by 2045. However, Indonesia currently faces a multitude of development problems that may hinder its timeline, including but not limited to, poverty, energy security, climate change vulnerability, regional disparities and social inequality. To truly achieve its goal, Indonesia would need to set the foundation for the four main pillars while simultaneously navigating through the different development challenges along the way.
There have been numerous discussions with regards to laying down the four main pillars within the nation. Tackling the first one: human development and the mastery of science and technology, an analysis from Kearney identified several key factors in capturing Indonesia’s digital opportunities. Two highlights would be empowering MSMEs and local ecosystems, and in attracting foreign as well as nurturing local digital talent. Focusing on talent and development would push Indonesia’s economic progress in the next few decades.
Following huge growth, Indonesia has to keep in mind the second and third pillars: economic development that is both sustainable and equitable. Technological and digital advancements must be in synergy with sustainability and equitability, with a specific commitment to the betterment of the environment as well as decreasing regional disparities. The last pillar would be to strengthen the nation’s resilience and its governance. This pillar is the glue that welds all the other pillars together. How its leaders govern, how strong its citizens are in withstanding crises, and the citizens ability to adapt to any upcoming problems are key in advancing Indonesia to be one of the strongest economies.
Indonesia’s current president, Joko Widodo, is currently at the near-end of his second term. Some of his policies directly influence how Indonesia is going to be in 2045, such as developing infrastructure and advancing human development and talent. Under his leadership, his administration has built around 1700 km of toll roads, constructed 30 reservoirs, 18 ports, 21 airports, and also marinas. These massive developments have actually increased the appeal for Indonesia’s investment climate, which if continued, would be beneficial for the long term. On the other hand, his relentless infrastructure policies may accrue large debt over time.
What you can do to contribute:
Vote, Vote, Vote.
It is imperative that all eligible voters within and outside Indonesia vote for whoever their preferred candidate is for the 2024 Presidential Cycle. The youth in Indonesia tend to have apathy regarding Indonesia’s politics, and while completely understandable, your vote matters much more than you think. The leaders you vote to power will be the one that shapes Indonesia in the upcoming crucial decades that can ensure our country is on track to become an economic powerhouse.
Keep yourself educated and aware of policies that will be implemented or continued.
With the abundance of information out there, the important ones can be easily drowned out by junk news. Understanding the key points and data will help you make more informed decisions regarding politics. It is important to read between the details and not just the headlines to keep ourselves informed on what policies are actually being pushed by the leaders of our country. Dramatized news cycles come and go every so often that readers may miss the policies that are being introduced.
Be on the lookout for new innovations and opportunities from the private sector.
As Indonesia’s productive demographic continues to grow and continues to upskill, there will inevitably be more companies and individuals that will introduce new innovations, businesses, or even entirely new sectors that can open up opportunities for people to work in. Try to seek new opportunities and be open to learning new skills.
Why it’s crucial:
As discussed, the coming years ahead are going to be a critical age for the development of Indonesia and its demography. More people are increasingly educated, more people are entering their productive age, and more people will be skilled. Though, to truly capture the effects of this demographic surplus, there are two sides to be considered: 1) the demography in question i.e. young, productive workers; and 2) the Government of Indonesia itself. As citizens, it is important that we actively educate and inform ourselves of any new innovations, policies, or economic trends that will be present, and to vote for the right leaders within the Government. As for the Government, they should continue to invest (and also actively find ways to obtain Foreign Direct Investment) in development policies such as education, healthcare, and even social security programs to ensure that no one is left behind as Indonesia encounters its demographic boost.
https://www.undp.org/indonesia/projects/path-peaceful-and-prosperous-indonesia-2045
https://fulcrum.sg/how-can-indonesia-escape-the-middle-income-trap/
https://www.statista.com/statistics/856701/indonesia-national-per-capita-income/
Income per capita
https://www.pwc.com/id/en/media-centre/infrastructure-news/september-2022/jokowi-builds-1700-km-toll-roads-2-1-times-the-length-of-the-previous-era.html