, predominantly stems from the contributions of capital, labor, and productivity, which remain relatively low. according to the ministry of national development planning / national development planning agency ( ppn / bappenas ), total factor productivity ( tfp ) to gdp growth from 2011 - 2019 averaged just 1. 37 % and, consequently, must be increased threefold to 3. 61 % from 2025 - 2029 to achieve economic growth of around 8 % in 2029 ( graph 34 ). this is an enormous task as it requires increased investment, productivity, and economic graph 34. sources of growth : contribution of capital, labor, and productivity % - 2 average tfp contribution 2011 - 2019 : 1. 37 % - 4 capital labor productivity end - to - end implementation of a comprehensive national economic transformation policy is required in terms of increasing capital, job creation, and productivity. this is important for achieving high economic growth and creating job opportunities sustainably ( figure 13. ). transformation policy must be directed toward improving the investment climate, accelerating investment realization, and fostering investment in capital - intensive sectors to increase the value of investment and ratio of capital to gdp. programs must be implemented to increase mean years of schooling ( mys ), the availability and quality of vocational education, which includes expanding professional certification, as well as investment and growth in labor - intensive sectors to create job opportunities and simultaneously nurture private consumption. meanwhile, various policies are also required to increase economic 2029 * 2028 * 2027 * 2026 * 2025 * 2024 * 2025 - 2029 : 3. 61 % economic growth note : * projection source : ministry of national development planning / national development planning agency ( ppn / bappenas ) efficiency in indonesia. regarding productivity, the contribution of tfp to gdp since 2000 tracked a downward trend before turning a corner in 2022, primarily due to progress in terms of downstreaming mineral and coal mining ( graph 35. a ). furthermore, efficiency and investment are also low, as reflected by a high trending incremental capital output ratio ( icor ), which restrains the contribution of capital to gdp growth ( graph 35. b ). in addition, the value of fdi in indonesia is relatively low, resulting in a ratio of capital to gdp of less than 20 %, which is far below malaysia, thailand and vietnam, which have reached approximately 50 % of gdp graph 35. a. total factor productivity ( tfp ) % 7. 5

. the spillover effects in the crisis was paramount and had played a massive role. therefore at that time, asean was seen as a fragile group of economies. [ asean recent developments ] distinguished guests, ladies, and gentlemen, 11. in the aftermath of the crisis, asean countries conducted vast restructuring towards recovery. asean economy rebounded with improved economic structure. the region quickly learned from the unfortunate experience. asean strived to regain domestic and international confidence. and now, the region has revived with healthy growth and stable financial sector. 12. on average, asean grew at 5. 5 % per annum in the last 15 years, higher than the growth of the global economy of 3. 9 %. this higher growth rate led to asean ’ s rising share of world gdp. in 2016, the share of asean gdp is 6. 1 % relative to that of the global economy. 13. the asean share of world trade also increased significantly. asean trade value as a share of the world trade value rose to 6. 9 % in 2015. the growing trade value indicates an evolving structural change within the region where the economy is becoming more open. the similar improvement also happens in foreign direct investment. 14. on average, foreign direct investment in asean amounted to usd121. 9 billion annually within the period of 2011 – 2015, increased significantly from around usd 29. 8 billion per annum in 2001 – 2005. good economic performance with relatively high gdp growth has been a pull factor for fdi in this region. asean has become once again an attractive investment destination. the confidence to the region is back. [ asean integration ] distinguished guests, ladies, and gentlemen, 15. the asean rapid and successful recovery is only the first main achievement of the region. with economic stability firmly gained, countries in the region have further progressed the regional economic integration to be able to play bigger roles in the future global economy, which is the second main achievement. after 20 years since the asian financial crisis, we now proudly see asean as a region of promising world power with a strong cohesion and togetherness, owing to the asean economic integration agenda. the regional integration project acknowledges and takes care of different levels of preparedness by asean member states. it also upholds harmony and synergy by employing asean own values. 16. the initiative of asean economic integration has reached an important milestone in 2015 with the establishment of asean economic community 2015. after the 2015 graduate, the economic integration agenda in financial sector is now being pushed to be more balanced