Since the early 1990s, Indonesia has been a lower-middle income country which gained recognition internationally as an attractive emerging market for investment and trade. However, in recent years IndonesiaŽs economic performance remained below those of East Asia�s most dynamic neighboring economies. Hence economists are concerned that Indonesia will run the risk of a middle income trap. It seems that economic inequality; structural deficits in the field of Infrastructure; Education as well as investment in advanced industrialization are some of the main reasons for the risk to be trapped.