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The dream of being a developed country in 2045: Jokowi’s numbers in plain language
Jokowinomics, if all goes according to plan, will see Indonesia rank among the world's top five largest economies with almost zero poverty in 2045, securing the country high-income status.
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President Joko "Jokowi" Widodo delivers a speech. (JP/Dhoni Setiawan)
I
n his speech to kick-start his second term on Sunday, President Joko “Jokowi” Widodo used the word “dream” twice when talking about his vision for Indonesia to be a developed country in 2045.
The target does reflect one big dream, but most Indonesians may be confused about what the numbers mean in everyday language. The Jakarta Post guides you through the targets, the numbers and terms that may be Greek to you to help you make sense of the speech.
Middle income trap
“Our dream, our ambition is that by 2045, after one century of Indonesian independence, Indonesia should, Insya Allah (God willing), have escaped the middle-income trap.”
The middle income trap is a development economics term that, in short, describes an economy being stuck at middle income level without progressing to be rich.
By World Bank standards, people in countries with “middle income” status earn between US$1,000 and $12,000 per person per year. For illustration, $1,000 will buy you things like a mid-range motorcycle or an iPhone XR in Jakarta. With $12,000 you can buy a humble 30-square-meter home in the outermost parts of the capital city.
Avoiding this middle-income stagnation is crucial for countries with a large working-age group like Indonesia, where people aged 15 to 64 years account for almost 68 percent of the overall population. A greater share of working-age people means greater chances to boost the economy and overall income.
