Indonesia's Economic Progress: A Call for Reflection

Assessing Achievements and Challenges

Former Bank Indonesia Governor Burhanuddin Abdullah recently highlighted the importance of reflecting on Indonesia's economic journey over the past year. Speaking at the Year-End Reflection 2025 forum in Jakarta, Abdullah acknowledged the country's various achievements while also pointing out significant challenges that remain.

Development Initiatives and Collective Efforts

Abdullah commended the collaborative efforts between the government, private sector, state-owned enterprises (BUMN), micro, small, and medium enterprises (UMKM), cooperatives, and the general public in driving improvements in quality of life. Specific programs mentioned include initiatives to enhance nutrition and strengthen rural economies, which are expected to build a healthier, more agile, and smarter younger generation in the medium to long term.

Areas of Concern

Despite these positive developments, Abdullah noted that Indonesia still faces significant challenges. The country's ranking in the Global Talent Competitiveness Index slipped from 65th in 2020 to 73rd in 2024. Moreover, Indonesia's Human Capital Index score stands at 0.56, lower than Malaysia and Vietnam. This score implies that Indonesian children are currently growing up to realize only about 56% of their maximum future productivity potential.

Path Forward: Sustainability and Resilience

Abdullah emphasized that Indonesia must continue to manage its natural resources wisely and sustainably to prevent future vulnerabilities to natural disasters. He stressed that development should not come at the cost of increased disaster risk. The former governor called for a balanced approach that prioritizes both economic growth and environmental stewardship.

Conclusion

In conclusion, while Indonesia has made notable progress in various development areas, there remain substantial challenges to be addressed. The Year-End Reflection forum, organized by Prasasti Center for Policy Studies and BACenter, served as a platform for stakeholders to intellectually and morally assess the country's trajectory. The event also acknowledged the public's strong participation in disaster relief efforts following recent floods and landslides in several provinces.