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Jakarta Post

Will Indonesia fall into middle-income trap?

  • Taufans Victor
    Taufans Victor

    Works at the Fiscal Policy Agency of the Indonesian Finance Ministry

Jakarta   /   Thu, April 27, 2017   /  11:32 am
Will Indonesia fall into middle-income trap? Indonesia’s economy has grown significantly since the Asian financial crisis in the late 1990s. In fact, Indonesia experienced, on average, 5.4 percent annual growth between 2000 and 2014. (Bloomberg/File)

The economies of Southeast Asian countries have rapidly developed since 2000, and from this point onward some countries, such as Thailand, the Philippines and Indonesia, have reached middle-income status and are now known as emerging countries. Unfortunately, these growing countries will probably face the threat of a middle-income trap in the future. The middle-income trap refers to the situation in which a country suffers economic slowdown after achieving middleincome status and is unsuccessful in attaining a higher income level (Aiyar et al. 2013, p. 3). Indonesia’s economy has grown significantly since the Asian financial crisis in the late 1990s. In fact, Indonesia experienced, on average, 5.4 percent annual growth between 2000 and 2014, and the country’s gross domestic product per capita also continuously increased from US$780.10 in 2000 to $3,346.5 in 2015 (World ...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.