Indonesia's Economic Growth Hindered by Lack of Income Level Catching Up
The goal of the study was to figure out how Indonesia can increase the growth rate of real income to improve people's welfare. The researchers used a three-step process to identify the factors influencing real income growth. They found that Indonesia's economic growth is influenced by government policies, adopted technology from Japan and USA to boost productivity, but still needs to catch up in terms of income level. Key factors affecting real income growth in Indonesia include capital, labor, exports, external debt, foreign direct investment, and population.