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.