Indonesia's Ministry of Finance urges a consistent five-agenda development strategy and stronger policy credibility to escape the middle-income trap

Indonesia's Ministry of Finance published closing remarks by Deputy Minister of Finance Suahasil Nazara at “TREND: Tutur Economic Dialogue 2026”, arguing that Indonesia needs a consistent and focused development strategy to avoid the middle-income trap amid rising global uncertainty. He framed current pressures, including commodity price movements and shifting global economic conditions, as requiring adaptive policy responses anchored in strong fundamentals. Nazara pointed to indicators he described as relatively solid, including economic growth above 5 percent, inflation around 3 percent, and a trade surplus sustained for 70 consecutive months, alongside adequate foreign exchange reserves and an expanding manufacturing sector. He set out five priority development agendas: raising labour productivity through stronger human capital (education, health, and social protection), building infrastructure to widen access to basic services and strengthen food and energy security, institutional reforms to create effective and credible bureaucracy and regulation with real economic impact, strengthening macroeconomic policy to be adaptive to global dynamics, and maintaining political and security stability. He also emphasised credibility as a cross-cutting requirement, citing the credibility of the State Budget (APBN), Danantara, and monetary policy, as well as broader investment policy, as critical for public and business trust.