Indonesia Must Avoid ‘Growing Old Before Getting Rich’
Jakarta. Indonesia must accelerate economic growth in the coming years to avoid falling into the middle-income trap and ensure prosperity is achieved before the country enters an aging population phase, Deputy Finance Minister Juda Agung said on Thursday.
Juda said Indonesia is expected to begin experiencing demographic aging around 2035, making sustained high economic growth increasingly critical over the next decade.
“It is time for us to grow faster and achieve prosperity more quickly. If we fail to maintain high growth in the coming years, we could truly fall into the middle-income trap,” he said in a statement.
“Beyond 2035, our population will begin aging. We must not become old before becoming rich,” he added.
Growth Not on ‘Autopilot’
Juda said Indonesia’s economic fundamentals remain strong, citing first-quarter 2026 growth of 5.61%, the highest quarterly expansion in five years.
He stressed that the performance was not achieved on “autopilot,” but was driven by active government policies, including accelerated state spending early in the year to ensure wider economic benefits for businesses and households.
“If we look at the sources of growth from both the demand and supply sides, there has clearly been support from government policies, including fiscal policy,” he said.
The government, he added, continues to maintain macroeconomic stability through spending refocusing and revenue optimization measures aimed at keeping the fiscal deficit under control at around 2.9% by year-end, despite global geopolitical tensions and slowing international growth.
Looking toward 2027, the government is preparing a development strategy centered on pro-growth and pro-welfare policies.
Priority programs will focus on strategic sectors, including food security, energy, education, healthcare, and downstream industrial development to strengthen long-term economic sustainability.
Juda also said maintaining stable prices for essential goods and subsidized fuel remains a key priority to preserve household purchasing power, which continues to serve as the main engine of Indonesia’s economy.
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