Navigating Indonesia's Industrial Policy

In October 2024, Prabowo Subianto became president of Indonesia. He inherits the “Golden Indonesia” vision: By the time the country celebrates 100 years of independence in 2045, it aims to be one of the five largest economies in the world. But if Indonesia remains dependent on commodity exports like palm oil, coal, natural gas, and rubber, does it risk getting stuck in the “middle income trap” – too wealthy to compete with low-wage nations, but without the human capital or technology to become a HIC?

Chatib Basri is an economist and former finance minister of Indonesia. He tells Tim Phillips about the industrial policies needed to accelerate Indonesia’s economy and diversify its exports, and the challenges if Indonesia does not accelerate its growth.

Read the full show notes on VoxDev: https://voxdev.org/topic/macroeconomics-growth/going-economic-growth-lessons-indonesia

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