or nearly three decades, Indonesia has struggled with the middle income trap (MIT). From 1993 to 2022, despite increasing per capita income, the archipelago nation found it difficult to achieve high and sustainable economic growth.
The National Long-Term Development Plan 2025-2045 (RPJN) outlines two scenarios for Indonesia to escape MIT over the next 20 years. The first scenario, described as transformative, envisages an average economic growth rate of 6 percent, aiming to exit MIT by 2041. The second, more optimistic scenario envisages an average economic growth rate of 7 percent, aiming for a out of MIT by 2038.
At the Qatar Economic Forum in Doha two weeks ago, newly elected President Prabowo Subianto expressed his belief that Indonesia will achieve 8 percent economic growth in the coming years, aligning with the optimistic scenario presented in the draft RPJN 2025-2045 .
During a presentation at the University of Indonesia Alumni Association, Chatib Basri, a former finance minister, stressed that both scenarios required a successful economic transformation. He further emphasized that a key determinant of this success was digital transformation.
The foundation of digital transformation lies in the willingness to provide unlimited access to the Internet at high speed and at no minimal cost, providing access to people with limited purchasing power. Fast, cheap and unlimited internet services are essential elements for achieving an effective digital transformation.
Internet access contributes significantly to fostering economic growth and community well-being. It enables the creation of online businesses and employment opportunities in rural areas, also accommodating remote work.
Reliable Internet access also improves online learning, facilitates Zoom meetings, supports telehealth and e-commerce, and streamlines bureaucratic processes, ultimately improving quality of life and economic activity, especially for those with limited financial means.
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