Institut Teknologi Bandung

Amalia began his talk by explaining the classification of the development plans. "The national development planning produces long-term, medium-term, and annual development plans," explained Amalia.

Moreover, she also mentioned the Four Pillars of National Medium-term Development Plans (RPJMN) which become the basis for the National Long-term Development Plans (RPJPN). The four pillars of RPJMN are increasing wealth and prosperity; biodiversity preservation; more advanced and sustainable economic structure; steady law and political institutions. In addition to that, the RPJN is also impacted by the vision and mission of the current President, and the presidential directive which consisted of five injunctions and seven development agendas.

In realizing these development plans Indonesia first needs to possess solid economic development sources from both its production and consumption sectors. "In the production side our economic growth is sustained by the service sector and the physical sector such as agriculture, mining, manufacturing industry, and construction," explained Amalia. Moreover, our technological advancement and large workforce have also contributed heavily.

Naturally, there are some challenges that we need to overcome in realizing our development plans. The biggest challenges are that our economic growth is very resource-driven and very dependent on cheap labor. These issues can lead to the dangerous Middle-Income Trap. "Indonesia has a vision to finally escape from the Middle-Income Trap by the year 2035," Amalia emphasized. In addition to that, Indonesia slowing productivity growth and technological development could also become additional challenges that the government needs to pay close attention to.

Moreover, the Covid-19 pandemic provided a boost to some specific industrial sectors such as chemical manufacturing. Thankfully, since 2019 our chemical industry has steadily increased its contribution to the economy. The output of the chemical industry, pharmacy, and even traditional medicine have recorded positive growth since 2019. These sectors reached their peaks during the third quarter of 2021 by occupying 2% of the total GDP.

During the Covid-19 pandemic, the chemical industry, pharmacy, and traditional medicine are some of the few sectors that managed to show a positive trend. Because of this growth, the combined economic output of those three sectors was able to occupy the third spot in Indonesia's five-biggest economic sectors together with oil and gas, food and beverages, computer and electronics, and metal.

For the future, the Indonesian government has set the routes for the development of the Green Chemical Industry which is in line with its agenda of Sustainable Development 2030 by utilizing renewable energy, consuming and producing something sustainable, and minimizing the chemical hazards.

Reporter: Yoel Enrico Meiliano (Food Engineering, 2020)

Translator: Favian Aldilla R (Civil Engineering, 2019)