Indef Economist Says It Needs An Additional IDR 1,000 Trillion Per Year To Reach 8 Percent Of The Economy

JAKARTA - Institute for Development of Economics and Finance (Indef) researcher Ahmad Heri Firdaus stated that Indonesia needs an additional IDR 1,000 trillion per year in the Gross Domestic Product (GDP) ratio to achieve 8 percent economic growth.

"To grow 8 percent, Indonesia's GDP must increase by IDR 1,000 trillion from the value of GDP," said Heri in the agenda of Opportunities and Challenges of the Chemical Industry as a National Strategic Project in Encouraging Economic Growth in Jakarta, Friday, March 14.

Heri assessed that so far the Indonesian economy has only grown by 5 percent or equivalent to Rp600 trillion in one year.

Therefore, he said, to optimize national economic growth, an economic strategy is needed that focuses on strengthening the service and industrial sectors, while still supporting the agricultural sector.

His party has made a sectoral growth scenario that will later contribute to increasing GDP ratio income.

For the agricultural sector, growth is needed at 6.07 percent per year, mining and excavation 8.05 percent, processing industry 8.35 percent, electricity and gas procurement 7.05 percent, construction must grow 7.1 percent, trade large and retail 8.83 percent and financial services and insurance 6.24 percent.

If you look at Indonesia's previous economic growth, which in 2024 grew by 5.03 percent, this figure slowed down by 0.02 percent on an annual basis (yoy) or 5.05 percent in 2023.

"The main challenges in accelerating the current economy include slowing purchasing power and limited market access," he said.

Caption: Institute for Development of Economics and Finance (Indef) researcher Ahmad Heri Firdaus (most right). Photo: Theresia Agatha/VOI