REPUBLIKA.CO.ID, JAKARTA -- In last 150 years, only a few countries can avoid middle income traps, namely South Korea, Taiwan and Singapore. Former Governor of Bank Indonesia (BI) who is also Head of Indonesian Economists Association, Darmin Nasution explained his opinion when opening national seminar at Ministry of Finance office on Thursday.
"It is not much. In Indonesia, all stakeholders actually have known how to address this problem," Nasution said as reported by Muhammad Iqbal on Thursday.
The second aspect to resolve this problem is increasing human resources quality, also institutional resources. Human resource, Nasution said, was the most crucial aspect to avoid the middle income trap. The role of education has not been seen though the state budget always increased.
"Policy that increases the competence and skills of human resources is still small in the country," he added.
Government expenditure for education continues to increase since 2004, from 55.29 trillion IDR to 118.467 trillion IDR in 2013. The educational function must be related to basic education, high education and cultural development.
Indonesia has been projected to have middle class with a per capita income of 4,270 USD this year. Indonesia's per capita income stood at 1,777 USD in 1999. The figure rose to 2,292 USD in 2000 and 3,592 USD last year.
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