Business · Economy · 1 hr ago

Digital Skills and Productivity Could Help Indonesia Avoid the Middle-Income Trap

Digital Skills and Productivity Could Help Indonesia Avoid the Middle-Income Trap

An opinion piece argues that digital talent can help Indonesia avoid the middle-income trap.

The trap can occur when a country loses its edge from low wages but has not yet built the productivity needed to compete with higher-value goods and services.

Technology alone does not guarantee higher productivity; workers must be able to adopt it, fit it into how companies operate, and develop useful solutions.

As artificial intelligence takes on more routine tasks, the piece says people’s value will increasingly come from identifying important problems and making good decisions.

More productive companies can pay higher wages while staying competitive, and innovation can help them create products and services with greater value.

Indonesia’s large population of working-age people could support growth, but the piece says that population becomes an economic strength only when people are productive.

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