Switzerland Investment Performance
Avoiding middle income trap through industry 4.0
Demographics
Abundant working-age population and
increasingly educated and IT savvy young
generation
Urbanization
68% of the population is projected to live in urban
areas by 2025. Income rise also drives higher
consumption.
Key
Challenges
Global commodity prices
challenges and opportunities for Indonesia in terms
of the country's trade balance and enhancing the
quality and diversity of investments in Indonesia.
Risk of growth slowdown and non-
inclusive development
Food prices, health shocks and natural disasters
can pose a threat to economic growth.
Strategies
Increase labor
productivity
2 Closing infrastructure
gap
3 Closing the skills gap
Industry 4.0
ā Raise productivity and GDP growth in
Indonesia
Harnessing the digital revolution to provide
more job opportunities and reach more
inclusive economic development
Required skills include technological skills
as well as creativity and advanced problem
solving.
Source: McKinsey, 2019; The World Bank, 2014
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