Abstract
Indonesia, endowed with substantial natural resources and a strategic archipelagic position, holds significant potential for economic advancement. However, since 2000, the country’s economic growth has been inconsistent, posing a challenge to the developmental objectives of President Jokowi’s administration, which began in 2014. Despite various policy efforts, Indonesia remains trapped in the middle-income bracket. Through in-depth qualitative analysis, this study aims to critically assess the measures that have been implemented and the effectiveness of Jokowi’s economic policies in addressing the structural challenges that have impeded Indonesia’s progress. This research is grounded in a liberal interventionist perspective, which advocates for active government involvement in the economy to safeguard and enhance capitalist structures, by particularly focusing on the industrial policies enacted in Jokowi’s administration. By examining the interplay between state intervention and market forces, the research endeavors to shed light on the potential pathways for Indonesia to overcome the middle-income trap. Contributing to the broader discourse on economic development, this research is anticipated to guide Indonesia in its quest to overcome the middle-income trap, laying the foundation for sustained economic growth and long-term national prosperity.
Recommended Citation
Christabel, Bernice; Kryzstov, Sean; and Rino, Meyer Rafael
(2024)
"Bridging the Middle-Income Trap: The Snowball Effect of Economic Development during Jokowi’s Leadership,"
Indonesia Foreign Policy Review: Vol. 11:
Iss.
1, Article 36.
DOI: 10.5281/zenodo.14562310
Available at:
https://scholarhub.ui.ac.id/ifpr/vol11/iss1/36
