Ria Fortuna Wijaya, Jakarta – International Economic Association Secretary General Lili Yan Ing has urged the government to take a more measured and consistent approach in setting its economic growth targets, cautioning that overly ambitious figures could weaken policy credibility in the eyes of the market.
Speaking to B-Universe on Wednesday, Lili said the widely cited 6% growth target does not fully reflect current economic conditions and risks creating uncertainty if it is not supported by realistic assumptions.
"The key issue is not whether the number is high or low, but whether it is consistent and credible," she said. "If the government sets a target of 5.4%, then it should remain 5.4%, rather than shifting to higher figures that may not be achievable in reality."
She emphasized that market participants value certainty across key indicators, including growth projections, exchange rates, oil prices, and inflation, and that frequent changes in official targets could undermine confidence.
Lili also underscored the importance of ensuring that economic growth translates into broader welfare gains. Referring to 2025 data, she noted that car sales grew by 6.8%, while motorcycle sales rose by only 1.3%, suggesting that recent growth has been unevenly distributed.
"This indicates that growth is being felt more by higher-income groups," she said. "Going forward, the challenge for the government is to ensure that growth helps narrow income gaps, creates jobs, and improves the quality of human resources."
On government spending priorities, Lili said several social programs need closer evaluation to ensure their effectiveness and targeting. She questioned the scale of funding allocated to the Free Nutritious Meal Program (MBG), arguing that a more focused approach would deliver better results.
Citing data from the Central Statistics Agency (BPS), she said only a small share of students, around 4%, report experiencing hunger or skipping meals at school. "This suggests the program should be targeted at those who need it most, rather than applied universally," she said.
Lili also called for greater clarity on funding allocated to sovereign wealth fund Danantara, noting that clear objectives and investment plans are essential to avoid inefficiencies and potential overlap with private sector activity.
With fiscal space remaining limited, she said the government needs to prioritize spending that directly supports productivity and human capital development, while also fostering a more predictable and supportive environment for private sector participation.
"The focus should be on careful allocation and creating conditions that allow the private sector to play a stronger role in driving sustainable growth," she said.
Source: https://jakartaglobe.id/business/economist-says-6-growth-target-becomes-ever-more-elusiv