Kebijakan Mitigasi Middle Income Trap Melalui Investasi Sektor Transportasi yang Berkelanjutan

Abstract

The middle income trap is a condition where the income achievement is at the middle level for years and is unable to move to a higher level. The Covid-19 pandemic that has hit the whole world, including Indonesia, makes it a challenge to get out of the middle income trap in extradionary conditions. There needs to be a breakthrough in sectors that have multiple effects so as to encourage the Indonesian economy, one of which is transportation. By taking lessons from China, Singapore, and South Korea, which have improved the indogenous, open connectivity between regions and improve transportation infrastructure networks. Good infrastructure is also a measure in the process of moving goods, labor and capital, in this case reducing transportation costs. This elaboration is in accordance with the New Economic Geography (NEG) model that transportation costs determine economic productivity. However, the provision of transportation infrastructure is an issue related to the source of funding. Therefore, there is a need for alternative financing so as not to burden the APBN.

Keywords: Middle trap income, connectivity, indogenous, transportation infrastructure network