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Indonesia’s Transformation Towards Golden Indonesia 2045

JAKARTA In 2045, Indonesia will commemorate one hundred years of independence. The centenary is more than a symbolic milestone: it is the horizon for the country’s ambition to become a sovereign, advanced and sustainable nation. Through the Golden Indonesia 2045 Vision, Indonesia seeks to escape the middle-income trap, become a high-income economy and ensure that national progress translates into a better quality of life for all Indonesians.

By 2045, Indonesia aims to raise its gross national income per capita to approximately USD 30,300, substantially reduce poverty and inequality, strengthen the quality and competitiveness of its people, increase its global influence, and move towards lower greenhouse-gas emissions. Achieving these goals will require more than maintaining the economic growth of around five percent recorded in recent years. Indonesia must transform the foundations of its development by raising productivity, creating higher-value industries, improving human capabilities, and ensuring that progress reaches every region.

This long-term vision is built on four mutually reinforcing pillars: human development and mastery of science and technology; sustainable economic development; equitable development; and stronger national resilience and governance. Since taking office in October 2024, President Prabowo Subianto has introduced a range of policies and flagship programmes that contribute to these four pillars and advance Indonesia’s broader transformation towards Golden Indonesia 2045. Together, these initiatives reinforce the foundations necessary to realise the country’s long-term aspirations.

Investing in Indonesia’s People

At the heart of Golden Indonesia 2045 is the quality of its people. The Free Nutritious Meals

Programme (Makan Bergizi Gratis, or MBG) seeks to improve nutrition, reduce stunting, and strengthen learning outcomes among children, while also supporting local farmers, cooperatives, and small businesses. Complementary initiatives— including free health check-ups, Sekolah Rakyat, vocational education, and investment in science, technology, and digital skills—aim to create a healthier, better-educated, and more productive generation capable of leading Indonesia’s future transformation.

Creating a Higher-Value Economy

The second pillar—sustainable economic development—seeks to build a more productive, innovative, and higher-value economy. An important step in this direction was the establishment of Danantara Indonesia in February 2025. Overseeing state-owned enterprise assets valued at approximately USD 900 billion, Danantara seeks to mobilise investment towards industrial development, infrastructure, technology, and other future-oriented sectors. Its early initiatives, including support for semiconductor talent development and Waste-toEnergy projects, reflect Indonesia’s efforts to generate greater value from state assets and accelerate strategic investment.

A central component of this transformation is downstream industrialisation. In the nickel sector, Indonesia has moved from principally exporting raw ore towards building an industrial ecosystem that includes smelters, stainless-steel production, battery materials, and electric-vehicle supply chains.

The export value of processed nickel products increased from approximately Rp15 trillion (USD 841 million) in 2019 to around Rp360 trillion (USD 20.2 billion) million) following the expansion of domestic

processing. More broadly, investment in downstream industries reached Rp584.1 trillion (USD 32.77 billion) in 2025, an increase of 43.3 percent from the previous year. The same valueadded approach is being extended to other minerals as well as agriculture, fisheries, and energy.

Creating greater value from natural resources must be accompanied by stronger governance of their exports and proceeds. The new policy on Export Proceeds from Natural Resources (Devisa Hasil Ekspor Sumber Daya Alam, or DHE SDA) seeks to retain more foreignexchange earnings within the domestic financial system, strengthen liquidity, support exchange-rate stability, and enhance economic resilience. Danantara Sumber Daya Indonesia (DSI) further supports stronger governance and coordination in the management of strategic natural-resource commodities.

Energy security is another important component of this transformation. Advancing B40,

Indonesia introduced the B50 biodiesel mandate in July 2026, requiring diesel fuel to contain 50 percent palm-based biodiesel. Indonesia is also expanding the use of domestically sourced natural gas, including CNG and LNG, to gradually reduce reliance on imported LPG. Together with renewable energy development and battery and electric-vehicle supply chains, these measures support a more secure, competitive, and lower-carbon economy.

Spreading Progress Across the Archipelago

Economic growth alone will not fulfil the promise of Golden Indonesia if its benefits remain concentrated in certain industries, cities or islands. The third pillar—equitable development—seeks to reduce disparities among people and regions by improving connectivity, public services and local economic opportunities across the archipelago.

The development of Nusantara as

Indonesia’s new capital is intended to encourage more balanced growth beyond Java by creating a new centre of administration and economic activity connected with eastern Indonesia. At the village level, more than 80,000 Merah Putih Village Cooperatives (Koperasi Desa/Kelurahan Merah Putih) have been established to improve access to fertilisers, certified seeds, financing, storage, processing services, and markets.

Together with continued investment in transport, electricity, water, and digital connectivity, these initiatives seek to enable more regions and communities to participate in and benefit from national growth.

Strengthening Resilience and Governance

The fourth pillar recognises that long-term prosperity must rest on strong institutions and the capacity to withstand global shocks. Agricultural transformation enabled

Indonesia to achieve rice self-sufficiency in

2025, with production reaching approximately 34.7 million tonnes—an increase of more than 13 percent from the previous year—and generating a surplus of around 3.5 million tonnes without imports of rice for consumption. Government rice

reserves subsequently exceeded 5.3 million tonnes by May 2026. Energy resilience is also being reinforced through the B50 biodiesel mandate, greater utilisation of domestic natural gas, and renewable energy development, which can reduce dependence on imported fuels.

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