ResearchRegional Inclusive Development

Study and Advocacy on Strengthening Economic Diversification in Resource-Rich Regions in Indonesia, "Alternative and Sustainable Economy," in the provinces of West Nusa Tenggara, South Sumatra and the Riau Islands

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1 minute

If we look at the current growth in state income, which is still at point 5%, Indonesia will only become a developed country in 2041 at point 6% for the high income threshold projection. This can be done if Indonesia can get out of the middle income trap. So, economic transformation is needed with encouragement from various sectors.

Period

2021 – 2022

Funding Institutions

Ford Foundation logo

Objectives / Goals

Research conducted by Article 33 Indonesia highlights the urgency of economic diversification as a critical step to maintain economic stability in the face of shocks, increase investment opportunities, and reduce dependence on one particular sector. Although initially carried out in natural resource-rich areas, now many other areas need to diversify to reduce the risk of dependency. In a global context, Indonesia has good opportunities for diversification, although it is still faced with significant challenges. On the other hand, regulations at the central level have begun to provide encouragement, but their implementation has not been optimal at the regional level.