By: Fadjar 'Cak Tom' Hutomo ( Chair of Tourism dku Civil & Environmental Engineering - PP Association of Indonesian Engineers )

Indonesia, with the wealth of natural resources and extraordinary demographic potential, standing at an important intersection in its economic journey. As a medium -income country, Indonesia faces a big challenge to get out of Middle Income Trap - a fogger that makes many countries fail to jump into developed countries because of the stagnation of economic growth.

One of the keys to realizing Indonesia's vision as a developed country is the revitalization of the manufacturing sector through policies and re-industrialized programs. However, the success of this re-industrialization is very dependent on massive investment, and for that, the fundamental transformation of the culture of "people saving" to "to invest" is a critical step that cannot be postponed anymore.

The manufacturing sector has so far been the backbone of Indonesia's economy, contributing about 19% of Gross Domestic Product (GDP). This contribution shows how vital industry is for the national economy.

However, behind that number, there is a real threat lurking: the risk of de-industrialization. This phenomenon can be seen from the decline in industrial competitiveness, the slow technological innovation, and dependence on the primary sector such as mining and agriculture. If this trend continues, Indonesia will not only fail to get out of the Middle Income Trap, but also loses the momentum to compete on the global stage.

Therefore, re-industrialization-a planned effort to revive the manufacturing sector with a focus on technology, productivity, and added value-becomes a strategic necessity.

Re-industrialization is not just a slogan, but a large project that requires significant financial resources. Investment is the main fuel to make it happen. Whether it's to build modern industrial infrastructure, adopt sophisticated technology such as automation and artificial intelligence, or improving labor skills, all of them require a lot of capital.

Unfortunately, Indonesia is currently still constrained by the low level of domestic investment. Data shows that the ratio of investment to Indonesian GDP is still lagging behind compared to neighboring countries such as Singapore or Malaysia which has succeeded in stepping into the status of developed countries. Without a surge in investment, dreams of re-industrialization will only be empty wishful thinking.

This is where the transformation of economic culture is crucial. During this time, Indonesian people tend to have a "saving society" mentality - saving for short -term financial security. Although saving is a good habit, this approach does not support dynamic economic growth.

Money stored in a bank or set aside in the form of conventional savings is often not flowed back to productive sectors such as manufacturing. Conversely, if the community turns into an "Investing Society"-who dares to allocate funds for productive projects such as manufacturing company shares, infrastructure bonds, or technological startup funding-then the economic wheel will spin faster. Community investment will not only fund re-industrialization, but also creates domino effects: employment increases, increasing purchasing power, and equitable welfare.

Of course, this transformation does not occur by itself. The government has a big role to create a conducive ecosystem. Policies such as tax incentives for domestic investors, massive financial education, and the provision of safe and profitable investment instruments can encourage this cultural change.

On the other hand, the private sector - especially manufacturing companies - must show a convincing performance that people believe to invest their capital. Collaboration between the government, the private sector, and the community is the key to moving the wheels of investment for the sake of re-industrialization.

Indonesia must not be complacent with the status quo. Middle Income Trap is a real threat, and de-industrialization is a shadow that must be immediately overcome. By prioritizing re-industrialization supported by massive investments, as well as changing the paradigm of society from just saving to investing, Indonesia has a golden opportunity to jump into a developed country.

This step will not only lift the economy, but also confirms Indonesia's position as a respected global force. The time is now - every rupiah invested today is the foundation for a more prosperous future.

Rawamangun, 02/20/25