Business · Economy · 1 hr ago
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.
Digital skills and productivity are presented as important to helping Indonesia avoid the middle-income trap.
The article argues that technology alone does not raise productivity unless people can adopt, integrate and develop it.
It says higher productivity can help companies pay higher wages while remaining competitive.
The author argues that Indonesia’s large population of working-age people could support growth if they become more productive.
The article calls for an economic shift from low-cost labor and raw resources toward knowledge, innovation and higher-value products and services.
- Who
- Indonesia, its companies and digital talent.
- What
- An opinion article argues that digital skills and productivity could help Indonesia avoid the middle-income trap.
- When
- Published on 17 October 2026.
- Where
- Indonesia.
- Why
- Rising wages weaken the advantage of low-cost production, so the article says growth must increasingly come from productivity and innovation.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Publication date
- 17 October 2026
- Country discussed
- Indonesia
- Technology discussed
- Artificial intelligence
- Economic challenge
- The middle-income trap
- Productivity pathway
- Digital talent helps companies adopt, integrate and develop technology