Yolanda Agne, Jakarta – President-elect Prabowo Subianto is optimistic that Indonesia could achieve the 8 percent economic growth target within two to three years of his administration.

"I am very confident. I've discussed with experts and studied the numbers. I am sure we can easily reach 8 percent. I am determined to surpass it," he said while attending the Qatar Economic Forum 2024 in Doha on May 15, 2024.

What needs to be done to achieve the target of economic growth?

Increase state budget

The Prabowo-Gibran administration needs an additional budget of Rp300 trillion in the 2025 State Budget (APBN) to boost economic growth.

The addition is necessary to realize Prabowo Subianto's mission to pursue 8 percent economic growth, with the economy needing to be stimulated to grow by 5.8 to 5.9 percent next year.

"So that we have a starting point to pursue 6-7 percent, then 8 percent. What is the shortfall (in spending)? It is still Rp300 trillion short," said a member of the Prabowo-Gibran campaign team's expert council, Drajad Wibowo, in Jakarta on Wednesday, October 9, 2024.

The 2025 APBN sets a target for government spending of Rp3,621.3 trillion. However, Drajad mentioned that next year's government revenue would largely be used to pay off maturing debts and debt interest.

Boost investment and exports

The Executive Director of the Institute for Development of Economics and Finance (Indef), Esther Sri Astuti, says the 8 percent target is challenging but achievable if the dominant engine of economic growth is not just consumption. "But investment and exports also need to be increased," she told Tempo.

Increase the economic growth target for 2025

To meet the target of 8 percent growth, the Commission XI of the House (DPR) agreed to set Indonesia's economic growth target in the 2025 State Budget at a level of 5.1 to 5.5 percent. In the first quarter of 2024, Indonesia's economy grew at an annual rate of 5.11 percent.

The assumption of economic growth will be the basis for formulating the 2025 State Budget as a transitional period because its implementation will be carried out by the future Prabowo-Gibran administration. Economist of Bank Central Asia (BCA) David Sumual believes that the target can be achieved, despite various challenges ahead.

"Although external challenges such as geopolitical factors and their impact on oil prices and the sluggish global economic growth still need to be watched out for," he told Tempo through a messaging application on Saturday, June 8, 2024.

– Yolanda Agne, Annisa Febiola, Yudono Yanuar

Source: https://en.tempo.co/read/1928978/prabowo-targets-economic-growth-of-8-percent-heres-what-experts-sa