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Jakarta Post

Better human capital 'key' to escaping lower middle-income trap, economist says

  • Elly Burhaini Faizal
    Elly Burhaini Faizal

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, August 27, 2019   /  10:32 am
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2020 state budget allocation for human capital development(JP/Hengky)

Indonesia may escape from the lower middle income trap that the country has faced since 1985 by improving its human capital through increased attention on the quality of education, an economist has said.  Former environment minister Emil Salim said there was now an unequal level of socio-economic development between regions in the country, in which many eastern provinces, such as East Nusa Tenggara, Maluku, Papua, West Papua and West Sulawesi, had low human development indicators. Therefore, Indonesia’s development programs should be focused on improving the quality of human resources massively, narrowing socioeconomic gaps between the country’s western and eastern provinces. Two of Indonesia’s easternmost provinces, Papua and West Papua, suffered the greatest losses in human development, according to Emil. Citing the latest human development index ...