DIGIVESTASI - President-elect Prabowo Subianto Optimistic Indonesia Can Achieve 8 Percent Economic Growth in Five Years. President-elect Prabowo Subianto remains optimistic that Indonesia can achieve an economic growth rate of up to 8 percent within the next five years.

The Defense Minister emphasized the importance of developing National Strategic Projects (PSN) to reach this ambitious target.

“The Coordinating Minister for the Economy just mentioned that we are optimistic about achieving over 5 percent growth. I am even more confident,” said Prabowo during his speech at the launch of the One Map Policy Geoportal 2.0 and the presentation of PSN and Special Economic Zones achievements in Jakarta on Thursday (18/7/2024), as reported by Antara.

“We must dare to set higher targets. I am optimistic that we can achieve 8 percent,” he asserted.

Prabowo emphasized that achieving an 8 percent economic growth target is not impossible for Indonesia, given the country's vast natural resource wealth.

“From what I see, I am very optimistic, our wealth is enormous, our potential is enormous,” said Prabowo.

In his speech, Prabowo humorously remarked that his confidence is so strong that he bet with some ministers from neighboring countries that Indonesia could achieve 8 percent growth during his administration.

“There are some ministers from another country who bet with me. Your excellency, if you can achieve 8 percent growth once, even once in the next 5 years, they will buy me dinner. I said, your own. If we achieve 8 percent, you have to buy me dinner,” he revealed.

Previously, Prabowo explained that to achieve the 8 percent growth target, he would focus on poverty alleviation by creating as many jobs as possible.

“That will also be the guideline for the next Indonesian government. We want growth, but we also want to address poverty, we also want to create jobs,” said Prabowo at the Mandiri Investment Forum 2024 in Jakarta on Tuesday (5/3/2024).

Prabowo also emphasized that the state and state-owned enterprises (BUMN) must contribute with good strategies. He hopes his administration can manage rational and efficient decision-making.

“Clearly, we are pushing for efficiency, we are pushing for rational decision-making that can prioritize the economy. We must do our best, and we are very optimistic we can achieve this,” Prabowo added.

On the other hand, the Executive Director of the Center of Reform on Economics (Core), Mohammad Faisal, believes that to achieve economic growth in the range of 5.1% to 5.5% in 2025, the government needs to work harder or take extra efforts.

In the past five years, Indonesia’s economic growth has not exceeded 5.1%, except in 2022 when Indonesia experienced a "windfall" from commodity prices that boosted economic growth to 5.31% (year-on-year/yoy).

“The target of 5.1%-5.5% requires breakthroughs and new approaches, especially for 8%,” he said, quoted on Tuesday (21/5/2024).

Faisal stated that Indonesia needs another "windfall" moment to grow the economy according to the target. In other words, Faisal continued, to achieve 5.5%, breakthrough programs are needed because the commodity windfall has ended, and export commodity prices are moderating.

“If the new government programs intended to boost growth, like free lunch programs, are well-designed to have a significant impact on the domestic economy,” he explained.

Faisal added that if a lunch program could stimulate SMEs in each region, it would positively impact the economy. Conversely, if free lunches are handed over to large companies, there will be no significant economic effect.

Part of this article was published on Bisnis.com with the title “Economists Say Prabowo Needs ‘Windfall’ for 8% Economic Growth.”