Escaping From Middle Income Trap

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East Java Governor, Soekarwo. (Photo: UNAIR NEWS)

UNAIR NEWS – One way to escape from middle income trap is by improving the human resources. It was stated by East Java Governor, Soekarwo, during interview after attending “Outlook 2017: Improving Regional Administration Roles: To Maintain Economic Growth in the Global Uncertainty“, on Thursday, December 1, in Hotel Bumi, Surabaya.

Soekarwo emphasized that human resources quality can be improved by promoting vocational education. From 113 countries trying to escape from middle income trap, there are only 10 made it, one of them was South Korea.

“Industrial manufactures should be supported by excellent human resources. General schools should be stopped temporarily and replaced by vocational schools. Beside education, training on incubator in regencies which have been long implemented cannot stop,” said Soekarwo.


Regarding the concept of his Jatimnomics, Soekarwo admitted that mini SMK (senior vocational high school) has not succeeded yet. At the beginning of the development, his unit expected them to work in formal sector abroad. But a lot of them want to become entrepreneurs.

“Most of them even went to school by themselves,” he said.

Domestic Market

At the moment, overseas market tend to be protective, therefore, the only way is expansion in domestic market.

“The economy is decided by consumption. To improve consumption, the income cannot be decreased. Second, investments decide. Investments from other countries create confusion as domestic investments are falling. Third, export import. Everything is being protective. One thing we can do is expanding the market in the country,” said Governor of East Java.

Soekarwo said that, one way to improve the market in the country is by making competitive prices of commodities with other province. “They must be cheaper that the products from West Java and Central Java. How? By decreasing costs and interests,” said Soekarwo. (*)

Author: Defrina Sukma S.

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Media komunikasi dan informasi seputar kampus Universitas Airlangga (Unair).

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