Consultative meetings with various stakeholders in Indonesia for the development of long-term productivity strategy.

As part of Indonesia’s ambitious drive to escape the middle-income trap and achieve sustainable economic growth, a series of high-level research visits and consultations were conducted by Indonesia’s National Development Planning Agency (Bappenas) in collaboration with the APO. These initiatives are integral to the APO project Development of the National Productivity Master Plan for Indonesia, which aims to address the persistent decline in total factor productivity (TFP) and ensure long-term economic resilience. The rationale is evident: with a projected decline in the labor force and the reliance of capital growth on strong investment, productivity-driven transformation is crucial for sustaining economic momentum.

The project activities focused on in-depth engagements with key productivity stakeholders, including ministries overseeing economic sectors, labor market policies, and industrial development. In January and February 2025, to gather insights into Indonesia’s productivity landscape, structured discussions were conducted with Bank Indonesia, the Ministry of Manpower, the Ministry of Industry, the National Research and Innovation Agency (BRIN), and the Ministry of Agriculture, among others. These consultations provided a platform to explore policy interventions for boosting manufacturing efficiency, modernizing agriculture, enhancing digital transformation, and fostering a research-driven economy. The findings from these interactions will serve as a foundation for crafting evidence-based strategies to improve productivity at sectoral, national, and regional levels.

A key highlight of the project was the consultative workshop on industry priorities held on 17 January 2025, which focused on strategic initiatives for accelerating productivity improvement through targeted quick-win programs. In the workshop, the policymakers and APO experts deliberated on industry-driven productivity improvement, optimizing investments in technology, workforce development, and sectoral productivity enhancement. Special emphasis was placed on regional productivity gaps and the importance of synchronizing national and local government policies to drive inclusive growth. The outcomes of this project will not only inform Indonesia’s National Productivity Master Plan but also provide a strategic blueprint for fostering a high-income economy by 2045. This ongoing policy consultancy project is expected to be completed in May 2025.