Kemenko PM and UI strengthen research synergy to tackle middle-income trap

The Coordinating Ministry for Community Empowerment and the University of Indonesia held a national seminar to discuss challenges in community empowerment amid the middle-income trap.

The seminar titled “Challenges of Community Empowerment in Facing the Middle-Income Trap in Indonesia” took place at the UI Campus Assembly Hall in Depok on Wednesday, May 20, 2026. Around 300 participants from 44 ministries, agencies, and universities attended to formulate policy recommendations.

UI Vice Rector for Research and Innovation Hamdi Muluk highlighted the university’s role in supporting government policy formulation. Deputy for Coordination of Village Community Empowerment, Disadvantaged Regions, and Special Regions Abdul Haris presented data showing Indonesia’s economic growth at 5.61 percent in the first quarter.

Haris also noted that real wages of Indonesian workers fell by an average of 1.1 percent per year between 2018 and 2024. He pointed to the gap between research and policy as well as the need for structural investment.

The forum aligns with Presidential Instruction Number 8 of 2025 and Law Number 59 of 2024 on the RPJPN 2025–2045. Participants hope the discussions will foster cross-sector coordination toward Indonesia Emas 2045.

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Cak Imin and President Prabowo discussing a trillion-rupiah budget boost for small businesses and creative industries in an official setting.
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Cak Imin requests Rp1 trillion extra budget for UMKM

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Coordinating Minister for Community Empowerment Muhaimin Iskandar, known as Cak Imin, has requested an additional Rp1 trillion budget from President Prabowo Subianto to support MSMEs and the creative economy.

The Ministry of Coordinating for Community Empowerment is holding Pasar 1001 Malam from March 11-13, 2026, in Banda Aceh to bolster local UMKM while emphasizing humanitarian aspects. The event targets post-disaster communities with various social and economic programs. Deputy Leontinus Alpha Edison stressed the integration of economic strengthening and social care.

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Indonesia's middle-class resilience requires bolstering quality job opportunities, according to Mandiri Institute. Their analysis highlights 86 million people in the transitional middle class vulnerable to economic shocks. Chief Economist Andry Asmoro stresses raising worker productivity.

The Indonesian government targets revitalization of 71,744 educational units in 2026 with a Rp14 trillion budget as part of President Prabowo Subianto's broader five-year plan to renovate 300,000 schools. Education Minister Abdul Mu'ti stated that Rp2.6 trillion has been realized so far. The program prioritizes schools damaged by disasters and those in underdeveloped regions.

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Jakarta Governor Pramono Anung Wibowo stressed that national challenges have shifted from territorial issues to information sovereignty and digital transformation. He made the remarks during National Awakening Day commemorations at Jakarta City Hall.

South Korean President Lee Jae Myung and Indonesian President Prabowo Subianto agreed on April 1 in Seoul to elevate their bilateral ties to a special comprehensive strategic partnership and expand defense industry cooperation. They committed to strengthening resource supply chains amid Middle East war uncertainties. The two nations signed 10 memorandums of understanding.

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