TEMPO.CO, Jakarta-Trade Minister Thomas Trikasih Lembong said Indonesia must make use of demographic bonus to break free from middle income trap. According to Lembong, the demographic bonus phenomenon which is beneficial for Indonesia will not last long.
“We have offered our prided demography to investors and it will end in 10 years which is in 2025,” said Lembong on Monday, October 19.
Lembong said the government must capitalize this demographic bonus. Indonesia is losing competition with several developing countries, such as Vietnam, which has overtaken Indonesia in the coffee and electronic sectors.
“Vietnam can export US$30 billion per year only from Samsung,” said Lembong. Vietnam also already has free access to the European Union and the US.
This causes investors from developed countries to prefer Vietnam to Indonesia to open factories. “Indonesia is a G-20 country with the largest population and the most successful democratic system. However, Vietnam is starting to catch up and this is worrying,” said Lembong.
AHMAD FAIZ IBNU SANI