Villages key to stable national economic growth: BRIN chief

Jakarta (ANTARA) - The economic potential of Indonesia's rural areas represents a pillar of real economic strength capable of sustaining national economic growth and stability, Head of the National Research and Innovation Agency (BRIN) Arif Satria said on Thursday.

Speaking at the BRIN Goes to Villages event in Jakarta, Satria stressed that strengthening rural economies is a prerequisite for Indonesia to achieve its ambition of becoming one of the world's four largest economies between 2045 and 2075.

"Why the rural economy? Because the rural economy is not a footloose industry. A footloose industry is one that is not closely linked to local resources," he said.

To achieve that goal, Satria said economic development in rural areas must go hand in hand with social transformation to ensure that growth does not exacerbate inequality or lead to what he described as "modernization without development."

He emphasized that villages should not be viewed merely as geographical entities.

"When villages become new sources of growth, economic transformation, and social transformation, and when rural communities actively participate in the process, social transformation will naturally follow. Human resource quality will improve, educational standards will rise, health outcomes will improve, and ultimately the overall quality of life will be enhanced," he said.

As an example, Satria pointed to policies pursued by former South Korean President Park Chung-hee in the 1960s, which initially contributed to social disparities due to an excessive focus on high-technology industries.

South Korea later shifted its development strategy through the Saemaul Undong movement, which strengthened rural foundations and fostered self-reliance among local communities before the country successfully transitioned into an advanced industrial economy.

According to Satria, a strong rural economy can serve as the foundation for industrialization. He noted that while South Korea is geographically small, Indonesia faces a greater challenge given its vast territory.

"We therefore need to keep moving forward and continue working together tirelessly to develop our villages. Experience has shown that wherever economic growth and industrialization occur without a strong rural foundation, inequality is the inevitable result," Satria said.

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Translator: Sean, Azis Kurmala

Editor: Primayanti

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