University Economic Development Presentation: Indonesia Analysis

This presentation analyzes the economic development of Indonesia, focusing on the period between 1990 and 2014. It discusses the findings of the journal article by Kurniawan and Managi (2018), which uses an inclusive wealth framework to assess the nexus between sustainability and economic growth. The presentation highlights that while Indonesia's inclusive wealth growth is positive, the 'dilution effect' of its population has outpaced this growth, affecting per capita wealth. The presentation explores the depletion of environmental resources, the impact of energy production on wealth generation, and the challenges in implementing policies for sustainable development due to Indonesia's large population. It also evaluates the article's strengths, weaknesses, and areas for improvement, and provides an overall assessment of its readability and comprehension. The analysis covers the relationship between GDP and well-being, the importance of measuring both market and non-market assets, and the challenges posed by population growth in achieving sustainable economic goals.

Running head: ECONOMIC DEVELOPMENT
Economic Development
Name of the Student
Name of the University
Author Note

1Economic Development
Discussion
Sustainability development is measured in terms of its contribution to the well-being of
the future generation. As per the inclusive wealth framework, well-being depends on the
improvement of the human capital, natural capital and productive capital. In the context of
Indonesia, the emerging GDP growth is not accompanied by the sustainable economic
development. The depletion of the environmental resources is accountable for the country’s
deteriorating performance on the natural capital (Kurniawan and Managi 2018). The wealth
generated from energy production has been utilized for the fund generation program. Therefore,
deficiency in the intergenerational welfare program puts the natural resources into the vulnerable
condition. The improvement of the cumulative wealth does not assure the sustainable growth,
whereas, per capita wealth is considered as a fundamental tool to measure the productive base of
the economy. GDP is used as a direct provision of well-being. In the view of Indonesia’s
overwhelming population, it is difficult to implement a perfect policy to assure the sustainable
development (Setiawan et al. 2018). The dilution effect of population is recognized as a major
impediment to achieve the sustainable goal of the economy. If advancement in the wealth is not
enough to encounter the population explosion, social well-being will be declining. The
comprehensive measure of market and non-market asset needs to be done as to satisfy the
sustainability program.

2Economic Development
Reference list
Kurniawan, R. and Managi, S., 2018. Economic growth and sustainable development in
Indonesia: an assessment. Bulletin of Indonesian Economic Studies, 54(3), pp.339-361.
Setiawan, M.I., Dhaniarti, I., Utomo, W.M., Sukoco, A., Mudjanarko, S.W., Hasyim, C.,
Prasetijo, J., Kurniasih, N., Wajdi, M.B.N., Purworusmiardi, T. and Suyono, J., 2018, April. The
Correlations between Sustainability and Indonesian Economic Growth. In IOP Conference
Series: Earth and Environmental Science (Vol. 140, No. 1, p. 012089). IOP Publishing.