The Ministry of National Development Planning (Bappenas) has stated\nthat regulation and institutional frameworks are the main obstacles that\nmust be addressed to drive economic growth and accelerate Indonesia\u2019s\ntransformation into a developed nation.<\/p>\n
Eka Chandra Buana, Deputy for Macro Development Planning at Bappens,\nnoted that this finding is based on a growth diagnostic study conducted\nby Bappenas in collaboration with Harvard University to identify various\nconstraints hindering Indonesia\u2019s economic growth.<\/p>\n
\u201cThe most binding obstacles in Indonesia are not only from the\neconomic side, but also from regulation and institutions,\u201d he said\nduring a joint conference between Bappenas and the Asian Development\nBank Institute (ADBI) in Jakarta on Tuesday.<\/p>\n
According to him, improving regulation and institutions is vital\nbecause a clear development vision and strategy alone are insufficient\nto lead Indonesia towards its long-term development goals.<\/p>\n
To this end, Eka mentioned that the government needs to ensure a\nconsistent regulatory and institutional framework, accompanied by\nadequate funding and investment support, to accelerate the\nimplementation of various development priorities towards becoming a\ndeveloped nation.<\/p>\n
He added that institutional reform is essential to ensure that\nvarious development policies do not merely remain as documents but can\nbe implemented consistently and sustainably.<\/p>\n
Furthermore, Indonesia currently possesses the 2025\u20132045 National\nLong-Term Development Plan (RPJPN) through the \u2018Golden Indonesia 2045\u2019\nvision, aimed at achieving developed nation status and escaping the\nmiddle-income trap.<\/p>\n
Eka stated that Indonesia\u2019s economic growth needs to be in the range\nof 6-7 per cent to escape the middle-income trap.<\/p>\n
To achieve this target, Bappenas has established four stages of\neconomic transformation within the RPJPN 2025\u20132045.<\/p>\n
In the first stage, 2025\u20132029, the transformation is directed towards\nstrengthening the industrialisation ecosystem and increasing industrial\nproduct complexity, with an economic growth target of 5.6\u20136.1 per\ncent.<\/p>\n
Subsequently, for 2030\u20132034, the government targets the strengthening\nof industrial product complexity with economic growth of 6.9\u20137.8 per\ncent.<\/p>\n
In the 2035\u20132039 stage, the transformation is aimed at strengthening\nindustrial competitiveness towards global expansion, with a growth\ntarget of 6.4\u20137.6 per cent.<\/p>\n
Meanwhile, for the 2040\u20132045 period, Indonesia is directed to become\na manufacturing hub for the global market, with an economic growth\ntarget of 5.4\u20136.7 per cent.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bappenas-states-regulation-and-institutional-frameworks-hinder-indonesian-growth-1788872998", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }