{ "success": true, "data": { "id": 1795437, "msgid": "bappenas-delivers-bitter-truth-indonesia-trapped-as-middle-income-country-for-33-years-1781081546", "date": "2026-06-10 14:35:35", "title": "Bappenas Delivers Bitter Truth: Indonesia Trapped as Middle-Income Country for 33 Years", "author": "", "source": "CNBC", "tags": "", "topic": "Economy", "summary": "Indonesia has been stuck in the middle-income trap since 1993 and requires high growth to boost per capita income and industrial competitiveness, according to the Minister of National Development Planning. The government has set an economic growth target of 5.8% to 6.5% for 2027 as a stepping stone towards 8% growth by 2029. A series of integrated national priority programmes spanning food, energy, education, and village cooperatives have been designed to create a holistic development ecosystem.", "content": "

Minister of National Development Planning and Head of Bappenas\nRachmat Pambudy stated that Indonesia has remained shackled by the\nmiddle-income trap since 1993. This means the country has been in the\nmiddle-income trap for 33 years and has yet to make the leap to\nhigh-income status. \u2018Indonesia has indeed exited the low-income category\nbut has not been able to jump to become a high-income country,\u2019 he said\nduring a meeting with Commission XI at the DPR RI building in Jakarta on\nWednesday (10\/6\/2026). Rachmat noted that lessons from previous crises,\nsuch as the 1998 crisis and the COVID-19 pandemic, show that the\neconomic foundation still needs strengthening, as Indonesia remains\nvulnerable to shocks impacting the economy. \u2018Indeed, things are still\ndifficult now, but the notes delivered by the Finance Minister will\nprovide increasingly strong direction. Therefore, high growth is needed\nto enlarge national production capacity, increase per capita income,\nexpand employment opportunities, and strengthen our industrial\ncompetitiveness,\u2019 he explained. He mentioned that the government has\nseveral targets that must be achieved by 2029. These are outlined in the\nNational Priority Work Programme, which consists of 60 programmes spread\nacross clusters covering food, energy and water, education, health,\ndownstreaming, infrastructure, the people\u2019s economy, village\ndevelopment, and poverty reduction. \u2018From these eight clusters, we have\ncreated 60 concrete programmes, and the essence is that these eight\nclusters do not run independently. We are trying to make them\ninterconnected: food is connected to nutrition, nutrition is connected\nto education, education is connected to productivity, productivity is\nconnected to industry, and industry creates jobs. In this context, there\nwill be a reduction in the number of poor people while also creating\nbroader employment opportunities,\u2019 he elaborated. He explained that the\n2027 Government Work Plan is designed as a development ecosystem, not\nmerely a collection of activities. The implementation of the National\nPriority Work Programme is designed in an integrated manner so that its\nimpact on development is holistic. \u2018For example, in an integrated food\nzone, the government does not only drive food production but also\nensures quality standards, farmer mentoring, zone productivity, and\ninfrastructure support run as a single unit carried out across multiple\nministries and agencies,\u2019 he detailed. According to him, this way, the\nNational Priority Work Programme does not only produce activity outputs\nbut builds a more productive food ecosystem that is interconnected and\ndirectly impacts the community. He continued that the same principle is\nbeing applied to the formation of 80,000 Merah Putih Village and\nSub-district Cooperatives. It is not sufficient for cooperatives to be\nestablished only administratively; they must become drivers of the\nvillage economy. Cooperatives need to be supported by digital\ninfrastructure, accurate data infrastructure, access to financing, value\nchains, production facilities, training assistance, strong institutions,\nand governance that must be continuously strengthened. \u2018Therefore, this\nprogramme involves the interests of various institutions in an\nintegrated manner. The message is clear: the National Priority Work\nProgramme ensures that priority programmes do not run independently but\nlock into each other within a development ecosystem that mutually\nimproves for broader development goals. In this sense, intervention\nbecomes a benefit, and programmes become drivers of the people\u2019s\neconomy,\u2019 he stated. Bappenas noted that in the 2027 Government Work\nPlan, the government has set a national economic growth target in the\nrange of 5.8% to 6.5%. This figure is part of efforts to maintain\nmomentum towards the 8% economic growth target by 2029. In the 2027\nGovernment Work Plan development target document, the government is\ntargeting a GNI per capita of US$5,800 to US$5,840. Additionally,\ngreenhouse gas emission intensity is targeted to fall by up to 39.57%,\nwhile the Environmental Quality Index is projected to be at 76.84. In\nterms of social welfare, the government is targeting the poverty rate to\nbe reduced to a range of 6.0% to 6.5% by 2027, while extreme poverty is\ntargeted at 0%. The government is also targeting a Gini ratio in the\nrange of 0.362 to 0.367 as an indicator of reduced income inequality.\nThe open unemployment rate is projected to fall to a range of 4.30% to\n4.87%. The government has set a Human Capital Index target of 0.575.\n\u2018So, the direction for 2027 is to ensure growth creates added value and\nmore equitable welfare,\u2019 he said. Other development indicators are also\ntargeted for improvement, including the Farmer Welfare Index, which is\npegged at a level of 0.8038, and the proportion of formal job creation\nat 40.81%.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bappenas-delivers-bitter-truth-indonesia-trapped-as-middle-income-country-for-33-years-1781081546", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }