Deputy Interior Minister: If Demographic Bonus Not Harnessed, 'Golden Indonesia' Will Remain Just a Dream
Deputy Interior Minister (Wamendagri) Bima Arya Sugiarto is encouraging local governments to utilise the demographic bonus to accelerate economic growth. This is aimed at bringing Indonesia out of the middle-income trap and ensuring that the vision of Golden Indonesia 2045 does not remain merely a dream.
Bima stated that Indonesia has been touted to become a developed nation, even entering the top five countries with the largest economies in the world, in the next 20 years. “The condition is that we must escape the middle-income trap. Today, Indonesia is still trapped, for more than 20 years, even 30 years, in middle-income countries,” he said while attending the Working Meeting (Raker) of the Governors’ Forum for Cooperation of Primary Partner Regions (FKD MPU) at the Tentrem Hotel in Semarang City, Central Java, on Tuesday (12/5/2026).
He added that there are at least 108 countries in the world that have failed to advance or are stuck in middle-income countries. “That means if we cannot escape this middle-income trap, then we cannot. In 20 years, Golden Indonesia will just be a dream,” said Bima.
Bima explained that one of the assets Indonesia currently possesses is the demographic bonus, where the working-age population is higher than the non-working age. According to Bima, the current ratio is 100 working-age citizens supporting 45 non-working citizens.
Quoting data from the Central Statistics Agency (BPS), Bima said that Indonesia will enjoy the demographic bonus until 2039. However, he reminded that the demographic bonus in each region will differ.
“Like in Central Java and East Java, they might lose it faster because there are more elderly parents. Yogyakarta is one of the retirement cities with the highest number of elderly population in the Republic. So, how many years until its demographic bonus disappears? Gradually, the demographic bonus will fade,” said Bima.
He revealed that, based on BPS data, the current majority of Indonesia’s population consists of Millennials, Generation Z, and beyond. However, Bima believes that many regional heads are complacent and do not realise that the demographic bonus has a time limit.
“So many regional heads don’t get it. So Millennials, Gen-Z, and post Gen-Z are neglected. Later, they will become a burden. In large provinces like those on Java Island, it will disappear quickly because they are more advanced, have longer lifespans, and if Gen-Z is not harnessed, then the demographic bonus cannot be utilised,” said Bima.
He explained that, besides utilising the demographic bonus, the condition for realising Golden Indonesia is that economic growth must be double-digit for the next 10-15 years. Bima said that, based on BPS data, Indonesia’s current economic growth is 5.6 percent. According to him, if this growth is maintained and increased, Golden Indonesia can be achieved.
“We have big targets, we have the task of utilising the demographic bonus, regions must contribute to economic growth,” said Bima.
Bima stated that this is one of the focuses of the Ministry of Home Affairs. “This is now our concern. So the President has asked the Interior Minister, together with Bappenas and the Finance Minister, to design steps that regional heads can take to contribute to high economic growth,” said Bima.