Economic Growth and Sustainable Development in Indonesia

Economic Growth and Sustainable Development
in Indonesia

Findings of the article
• Indonesia is listed under one of the growing low-middle income nations owing to having
steady growth in GDP per capita from 1990 to 2014.
• Meanwhile, exploitation renewable and non-renewable resources raises question on the
sustainability of the economic development.
• Human capital in terms of education, health and utility service has received marginal
benefit during the overwhelming economic performance of Indonesia.
• Sustainable development depends on the advancement of socio-political factors and
perfect amalgamation of natural and produced capital.
• Indonesia has been experiencing fluctuating and unproductive economic growth because
of mismanagement over its abundant natural resources.

Conclusions and policy implications of the article
• In the light of inclusive wealth theory, appropriate evaluation of the Indonesian
biodiversity can lead the economy towards the sustainable development.
• According to the findings, overwhelming population growth has out passed the
average wealth growth of Indonesia over the last two decades (Kurniawan and
Managi 2018).
• Looking forward, irresponsible consumption of non-renewable resources aggravates
the welfare of future generation.
• The government should allocate the net-takings on productive asset instead of fund
consumption plan.
• A royalty policy needs to be allowed to recover the proportionate rent from the use
of natural resources (Barr
et al. 2016).
• Production of natural capital must be encouraged to generate positive externalities
for the economy.