Jakarta, September 8, 2025 – The Europe Today: Indonesia’s Ministry of National Development Planning (Bappenas) has reaffirmed its commitment to addressing the middle-income trap through comprehensive economic transformation, with the goal of enhancing the nation’s global competitiveness.
The effort is being advanced through the formulation of the National Productivity Master Plan (MPPN), designed to position productivity as the main driver of national development.
“This master plan is expected to serve as a collective instrument to make productivity the main driver of national development, paving the way toward Indonesia Emas (Golden Indonesia) 2045,” said Eka Chandra Buana, Deputy for Macro Development Planning at Bappenas, during the dissemination of the MPPN Final Report Draft, according to an official release on Monday.
Bappenas presented the draft to stakeholders to seek input ahead of its formal adoption. Developed in collaboration with the Asian Productivity Organization (APO), the MPPN provides a framework for steering Indonesia’s transition toward productivity-led growth.
Pungkas Bahjuri Ali, Special Advisor to the Minister on Social Affairs and Poverty Reduction, stressed that productivity growth should go beyond economic performance to encompass societal well-being.
“Productivity-driven growth can reduce poverty, create decent jobs, and strengthen Indonesia’s socio-economic resilience,” he stated.
Meanwhile, Arsyoni Buana, Head of the In-Country Programs Division at APO, underlined the central role of Total Factor Productivity (TFP) in accelerating development.
“As a key determinant of national productivity, TFP must be supported by innovation, technology, and education. With sufficient capital and labor, countries can optimize long-term and sustainable growth targets,” he said.
