This Is An Indef Step So That Indonesia's Economic Growth Can Be 8 Percent

JAKARTA - Executive Director of the Institute for Development of Economics and Finance (Indef) Esther Sri Astuti revealed, a number of strategies can be carried out in order to achieve 8 percent economic growth in 2029.

According to Esther, 8 percent economic growth is not only driven by household consumption, but there are other driving factors.

"The target for 8 percent economic growth is the dominant component. This dominant economic growth engine cannot only be from household consumption, but must be exported and invested," Esther said at the Prabowo-Gibran Government 1 Year Event in Jakarta, Thursday, October 16.

Esther revealed a number of efforts that could be made in the future. First, boost exports. According to Esther, efforts to boost exports can be done in two ways, namely product and market diversification.

"What is this way? The first is product diversification, because we are mainly based on commodities such as palm oil, coal, then rubber," he said.

For market diversification, Esther said, there needs to be a new market expansion for products from the Republic of Indonesia. "If we want market diversification not only to China and the US (American Serika), then what must be done is to find new markets," she said.

"Well, for example, we optimize, yes, the FTA-FTA that you have pocketed. So, don't let the FTA make us a market, we have to break through it," he continued.

The second effort is the transformation of the green manufacturing industry. The reason, he said, is that the global market is currently focusing on products that use sustainable principles or sustainability.

"Because most of them (global market focus) sustainability certification. Don't let Mr. Rifqi (Minister of Creative Economy) want to export batik, eh, the dye is from non-sustainable chemistry, there are no standards, well, you can't enter. So, there must be something called conduct to standard sustainability," explained Esther.

The third step is to maximize the use of fiscals for productive activities. One of them is by providing subsidies to Indonesian products like what China does.

Thus, it is hoped that domestic products can compete in the national and global markets.

"If Mr. Benny (Chairman of the Indonesian Exporters Association) said predatory pricing, that's right. So for example, Indonesians can import products from China by shipping (postage post) only IDR 10,000 through the e-commerce platform or even free shipping," said Esther.

"How did that happen? Because they give subsidies to Chinese products in Indonesia. How did that happen? Can the price be very cheap? It must be given subsidies, the important thing is market penetration first," he concluded.