Economic Growth Requirements for Indonesia Emas 2045
📌 To achieve the vision of Indonesia Emas 2045 (developed country status with a per capita income around $23,000–$30,000), the economy must achieve consistent annual growth of 6% to 7%.
📈 The high growth rate is a necessary condition, but not sufficient; the growth must also be inclusive and high-quality to ensure prosperity reaches all segments of society.
📉 Current growth rates hovering around 5% are insufficient to compensate for the time lost due to the COVID-19 pandemic, necessitating acceleration.

Quality of Growth and Labor Market Challenges
📊 A critical indicator of low-quality growth is the high proportion of informal workers, currently at nearly 60% (59.x%) of the workforce.
💰 Informal workers generally have lower incomes than formal workers and lack social security protection, indicating that current growth sources are not reaching many people effectively.
🏭 Growth driven by extractive, capital-intensive industries (like mining) absorbs less labor compared to other sectors, contributing to inequality and less inclusive outcomes.

Productivity and Investment Efficiency
📉 Indonesia’s Incremental Capital Output Ratio (ICOR) is high (around 6), meaning a large amount of additional capital is needed to generate just 1% of economic growth, signaling low efficiency.
🚫 Concerns exist regarding institutional weaknesses and potential misdirection of investment capital away from core productive activities, impacting efficiency improvements that should accompany technological change.
🔍 The Online Single Submission (OSS) system's goal of simplifying licensing must be continuously evaluated on whether it truly makes processes easier, cheaper, and more transparent for businesses.

Sectoral Opportunities and Policy Implementation
🌱 Agribusiness (agroindustry) presents a massive potential for sustainable growth because agriculture is a renewable resource, unlike mining (non-renewable resources like Nickel).
📉 Despite being the world's largest CPO producer, Indonesia's productivity per land unit lags behind Malaysia, highlighting room for improvement through better seeds and governance rather than just opening new land.
🏛️ Policies must prioritize economic considerations above all else in economic decision-making, with politics serving only as a supplementary factor.

Key Points & Insights
➡️ The primary challenge in achieving Indonesia Emas is consistently prioritizing a technocratic approach in designing and evaluating all economic programs and policies.
➡️ Continuous, honest review and evaluation of existing policies (like OSS or trade agreements) based on their *original intended impact*—not just output metrics—is crucial for correction and success.
➡️ Policymakers must move beyond evaluating output (e.g., number of people trained) and focus on measuring outcome and impact (e.g., increased exports resulting from training) using robust Key Performance Indicators (KPIs).
➡️ The public has a right to know the clear objectives, outcomes, and impact metrics of major government programs, as these are funded by public money.

📸 Video summarized with SummaryTube.com on Nov 24, 2025, 04:03 UTC