REPUBLIKA.CO.ID, JAKARTA -- Indonesia has never achieved 7 percent annual economic growth in a quarter century. But in the quarterly level, it once occurred in the second quarter of 2021 at the level of 7.07 percent, which is a marker of the revival of the national economy from Covid-19.
Indonesia's highest economic growth in 25 years was in 2007 at 6.35 percent. It was followed by 2010-2011 with 6.22 percent and 6.17 percent. By 2025, Finance Minister Sri Mulyani is aiming for economic growth of 5.1 - 5.5 percent.
“Higher and quality economic growth that by 2025, is expected to be in the range of 5.1 percent to 5.5 percent,” Sri Mulyani said at the Plenary Meeting of Parliament on the Government's Delivery of the Macroeconomic Framework and Fiscal Policy Guidelines in Jakarta, earlier this week.
The economic growth projection base is supported by inflation control, the continuation and expansion of downstream natural resources (SDA), the development of the electric vehicle industry, and digitalization supported by improvements in the investment climate and the quality of human resources (HR).
“This pace of growth is expected to be a strong foundation for higher growth in the next few years,” the Minister said.
The planning of the 2025 State Budget will be the last during the government of President Joko Widodo (Jokowi), while the implementation of the 2025 State Budget will be run by the governments of Prabowo Subianto and Gibran Rakabuming Raka as elected president and vice president.
Meanwhile, economic expert and Executive Director of Segara Research Institute Piter Abdullah is optimistic that Prabowo-Gibran's government can bring Indonesia to its target of seven percent economic growth.
“Indonesia has all the prerequisites for growth above seven percent. What is needed is the right policy that can overcome all the ills of the economy so far, mainly inefficiency,” Piter said in remarks in Jakarta, Wednesday (22/5/2024).
He hopes the problem of economic inefficiency can be addressed by the Prabowo-Gibran government, so that an economic growth target of 7 percent is no longer an impossible one.
According to him, what is needed to realize Indonesia's progress is economic growth of an average of seven percent over the next 10 years. If growth is 5.1 to 5.5 percent in Indonesia, he said, Indonesia Maju's target has not been achieved.
“We should be optimistic and hope that Prabowo's government can overcome the economic ills, so that high economic growth is no longer something that is considered impossible,” he explained.
He continued, with high economic growth, it will also affect the decline in unemployment and poverty rates, which can be pushed to lower numbers.
“If economic growth can be spurred above six percent, unemployment and poverty will be able to be pushed lower,” he said.
According to him, to promote high economic growth cannot be “ujug-ujug”. Economic growth in 2025 is more influenced by policies and programs in 2024 or earlier.
“With that in mind, economic growth in 2025 is not expected to jump more than six percent. But for growth of 5 to 6 per cent is still very likely to be achieved. Provided there are policies that are supportive enough to encourage consumption and investment,” he said.
Prabowo is optimistic Indonesia's economy can grow by up to 8 percent.
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