Education the key to Indonesia’s economy - Dr Indrawati

What are the challenges facing Indonesia's economy as the country embraces the digital era? That was the question posed by Indonesia's Finance Minister, Her Excellency Dr Sri Mulyani Indrawati, during a public lecture at The Australian National University (ANU) today. Dr Indrawati sees education as one of the keys to ensuring Indonesia's economy continues to go from strength to strength. "It's not just about participation rate and access to education - both in primary and secondary school - but also the quality of education," Dr Indrawati said. "Almost 10 years ago Indonesia decided 20 per cent of our budget should be spent on education. Fast forward 10 years and I'm disappointed Indonesia is not making significant progress on the budget that is allocated to education." Dr Indrawati spoke about some of the key challenges facing Indonesia's economy going forward, including a stagnant manufacturing sector, and the widening gap between the rich and the poor. "That widening gap can become a threat not only for economic progress but also to political stability," Dr Indrawati said. "The economic crisis in 97/98 shifted the Indonesia economy almost permanently - and now the question for our policy makers is can we shift back onto a much better path for the future?" Dr Indrawati says embracing new technology is important because it can create benefits for both Indonesian people and the economy in general, bringing with it efficiency, innovation and inclusiveness.