Coordinating Minister Airlangga Targets Indonesia's Nominal GDP 9.8 Trillion US Dollars By 2045

Coordinating Minister for Economic Affairs Airlangga Hartarto during the 2023 BPK RI Implementation Working Meeting, Jakarta, Monday (28/8/2023) (ANTARA/HO-Kemenko Ekonomi)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto targets Indonesia's nominal Gross Domestic Product (GDP) to reach 9.8 trillion US dollars in 2024, with Gross National Product (PNB) per capita of 30,300 US dollars.

In his presentation during the 2023 BPK RI Implementation Working Meeting, he targeted the population of the middle income category by 80 percent, with the contribution of the manufacturing industry to GDP reaching 28 percent and absorption of 25.2 percent of the workforce.

"Economic growth per year is not enough. So we need to grow 6 percent to 7 percent. But one of the things that is noted is ICOR (Incremental Capital Output Ratio) we are too high this year, namely 7.6. This means that the investment we include is not yet too optimal," said Coordinating Minister Airlangga as quoted by ANTARA, Monday, August 28.

Therefore, development approaches need to be changed from reformative to transformative, which at least includes infrastructure development both soft and hard, human resources, research, innovation, regulatory reform, data governance and security as well as increased investment and financing sources.

Airlangga assessed that Indonesia has various capitals to achieve this vision, namely human resources that are close to the peak of the demographic bonus, which we can only get in the next 13 years and will only happen once in a nation's civilization.

Therefore, the Indonesian people need to work hand in hand to take advantage of the demographic bonus momentum.

Then, very large natural resource capital, including 125.57 million hectares of Forest Areas, mineral energy resources reserves, to potential renewable energy reaching 3.716 GW. The government is also intensifying infrastructure development that is designed comprehensively through National Strategic Programs and Projects throughout Indonesia.

Indonesia also actively plays a role in international cooperation. In 2022, Indonesia successfully organized the G20 which produced 226 multilateral projects and 140 bilateral projects and continued in 2023 with ASEAN Chairship.

Currently, Indonesia is also in the process of accessing to be able to join the Organization for Economic Cooperation and Development (OECD), as one of the efforts to accelerate our transformation into a developed country.

Various concrete implementations of policy strategies implemented by the Government to support economic transformation include ease of doing business and increasing investment through the Job Creation Law and OSS, encouraging exports and maintaining external sector resilience through Export Result Foreign Exchange (DHE), strengthening purchasing power and controlling inflation through stabilization of food prices and commodity balances, and downstreaming.

"Of course, this transformation needs the synergy of all parties, including from the Indonesian Supreme Audit Agency and as an independent external auditor. BPK's role is very important in supporting the future national vision. Improvement of governance, accountability, evaluation and financial monitoring and transparency are important things in order to create a just, advanced, sovereign and prosperous society," said Coordinating Minister Airlangga.