Adil Al Hasan, Rr. Ariyani Yakti Widyastuti, Jakarta – Deputy of Economic Affairs of the Ministry of National Development Planning/Bappenas, Amalia Adininggar Widyasanti, stated that the future government will accelerate economic growth by 8-8.3 percent in the third year and 7.8 percent in the fourth year. Thus, achieving an average growth rate of 7.7 percent over five years.
Amalia mentioned that the free nutritious meal program planned during the elected president's term, Prabowo Subianto, will boost economic growth.
"In the short term, the Free Nutritious Meal program can boost economic growth by absorbing local products, thus stimulating aggregate demand," said Amalia during the Urgency of Industrialization Seminar to Achieve 8% Economic Growth held in Jakarta, as stated on Wednesday, October 16, 2024.
The Ministry of National Development Planning/Bappenas will promote potential sectors that boost productivity, leading to a multiplier effect, including through industrialization.
The government will develop industries focusing on downstream processing of priority industries such as agribusiness, mining, marine resources, basic industries, labor-intensive industries, sustainable consumer goods industries, research and innovation-based industries, medium-high technology industries, and creative industries.
"We want these industries to be an anchor and backbone of economic growth to enhance productivity and create quality jobs," she said.
In the same written statement, Founder and senior economist of the Center of Reform on Economics (CORE) Indonesia, Hendri Saparini, responded to the economic growth target of the elected president Prabowo Subianto, aiming for 8 percent growth. Hendri stated that a 5 percent economic growth is insufficient to create significant employment and added value.
"All countries that have become developed nations have experienced an economic leap. There is a leap in per capita income. Meanwhile, Indonesia has experienced minimal economic growth," said Hendri.
Hendri suggested that the future government take three approaches to achieving higher and better economic growth. With high economic growth, Indonesia can escape the middle-income trap.
First is the implementation of the Pancasila economic approach. "Pancasila economy is a people's economy. This is a message from the founding fathers to conduct economic activities collectively. It means there must be economic democracy," said Hendri.
Hendri mentioned that the government could involve all parties and provide access to participate in advancing industries. Thus, no one will be unemployed and unable to earn an income.
"Actually, everyone can work, but the government just needs to create economic policies so people can do something," he said.
Second, revitalizing industries. Hendri stated that industrial revitalization is crucial for Indonesia's economy to soar. This revitalization can be achieved by establishing basic industries and mobilizing all regional sectors. He mentioned that the manufacturing industry can anchor backward and forward linkages with supporting industries.
Third, Hendri proposed that the government implement more sophisticated and innovative industrial strategies and policies amidst global changes. "The government should ensure consumer safety and market security," he said.
Hendri cited examples such as free trade agreements and global economic cooperation. He mentioned that these should be conducted more measuredly based on the development of national industries, whether large or small, upstream or downstream.
"We need comprehensive and inclusive policies," he stated.