Indonesia's Economic Paradoxes: Too Long Accepted as Normal

Something has hardened in Indonesia’s economic journey over the past two decades: we have become too accustomed to accepting paradoxes as normal.

Mountains are razed to form vast lakes, ships carry minerals overseas, millions of hectares of land yield wealth, annual growth figures are announced, and skyscrapers rise in major cities. Yet simultaneously, farmers anxiously sell paddy, fishermen return with expensive diesel, rural youth leave villages due to lack of jobs, and the middle class lives in quiet fear of rising education, healthcare, and future costs.

For 22 years, Indonesia’s economy has moved forward. But in many ways, it has operated like a large machine overly focused on maintaining stability rather than having the courage to transform structures. We build roads but too slowly develop industrial sovereignty. We export natural resources but import added value for too long. We praise investment but often forget to ask: when the mines run dry, what remains for local communities?

In many regions, this irony is painfully evident. Rich land breeds impoverished communities. Coal-producing regions still have crumbling schools. Strategic mining areas leave villages with murky water and potholed roads. Palm oil expands widely, yet workers live hand-to-mouth. The world’s largest maritime nation still forces its fishermen to battle brutal markets and unfair prices.

And most painfully: all this has been accepted as normal for too long.