Indonesian Finance Minister, Sri Mulyani, said that Indonesia is still recognized as a middle-income country and is stuck in a “middle-income trap”.
“Not many countries in the world, less than 20, are able to escape the middle-income trap. This is a challenge for Indonesia”, said Minister Mulyani in a webinar broadcast yesterday.
Mulyani further added that the first step to achieving high-income status would be improving the quality of human resources in the country.
Mulyani says that countries that are able to invest and successfully improve the quality of their workforce and its skills will continue to increase productivity and innovation in various sectors.
“Not many countries are able to execute this HR challenge, even though they recognise that HR development is fundamental,” Mulyani, a former managing director of The World Bank, said.
The most important sectors for HR development in Indonesia would be education, health, and social security, she added.
Mulyani concluded by saying that skills development remained a challenge for Indonesia. Major reformation in education and health sectors are core in escaping the middle-income trap.”