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Can Indonesia thrive when meritocracy is under threat?
Concentration of power and privilege reinforces inequality and prevents meritocracy from taking root in Indonesia.
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'Merit over privilege': Students wear masks depicting then-president Joko “Jokowi“ Widodo (left), his son and vice president-elect Gibran Rakabuming Raka (right) and his brother-in-law and former Constitutional Court chief justice Anwar Usman during a protest in front of the Corruption Eradication Commission (KPK) office in Jakarta on Sept. 20, 2024. Protesters demanded that the antigraft body investigate all forms of abuse of power, including the private jet trip taken by Jokowi's youngest son Kaesang Pangarep. (AFP/Bay Ismoyo)
I
ndonesia, a country rich in cultural diversity and natural resources, continues to grapple with persistent poverty and widening economic disparity. As of March 2024, Indonesia's economy grew by 5.05 percent, slightly lower than 5.31 percent in 2022, maintaining the country’s long-standing trend of moderate growth.
However, this expansion has failed to translate into broad-based prosperity. Key sectors remain dominated by entrenched powerholders, limiting venues for broad economic participation. This reflects deeper structural barriers preventing talented individuals from contributing fully to the economy.
While this development target has been relatively stable, it remains modest compared to the ambitious goal set by President Prabowo Subianto, who aims to raise the country’s GDP growth rate to 8 percent annually.
However, bridging the gap from 5 percent to 8 percent economic expansion poses a significant challenge, demanding massive investments in infrastructure, industrialization and human capital development, similar to the economic transformations seen in China during its peak growth years.
Recent estimates suggest that Indonesia would need to secure approximately US$860 billion in investments between 2025 and 2029 to meet this ambitious target. However, Indonesia's current budget and fiscal policies are already strained, with the 2024 budget deficit projected at 2.3 percent of GDP, raising concerns about the government's capacity to balance aggressive growth initiatives with fiscal responsibility.
Beyond financial mobilization, Indonesia must harness its human potential by cultivating competent leaders, developing a productive workforce and fostering innovation. Democracy, grounded in the principle of meritocracy, offers a system that attracts and rewards talent and effort. Without such a system, Indonesia’s growth targets will remain unattainable, productivity will stagnate and critical reforms will falter.
Moreover, despite its growing economy, the benefits of growth have not been equally shared among its citizens. Indonesia’s Gini coefficient stood at 0.379 in March 2024, reflecting a slight improvement from 0.388 in March 2023 but still indicating a widening social divide.
