Sri Mulyani Says Indonesia Will Not Become A Developed Country If Economic Growth Is Only 5 Percent

Minister of Finance Sri Mulyani. (Photo: Doc. ANTARA)

Minister of Finance Sri Mulyani Indrawati emphasized that economic growth, which continues to move in the range of 5 percent, will not be able to bring Indonesia to become a developed country, in accordance with the 2045 Golden Indonesia Vision.

According to him, to achieve the 2045 Golden Indonesia Vision, national economic growth must move in the range of 6 percent to 8 percent per year.

"Indonesia's economic growth, which is maintained in the range of 5 percent in the midst of various world shocks, needs to be accelerated to 6 percent-8 percent per year to realize the 2045 Golden Indonesia Vision," Sri Mulyani said at a Plenary Meeting at the DPR RI, Monday, May 20.

Sri Mulyani explained that the acceleration of high economic growth requires the sustainability of structural reforms to increase productivity and economic transformation that has been consistently carried out in the last 10 years.

"Continuation and at the same time policy improvement are the keys to the success of achieving the 2045 Golden Indonesia Vision. We can no longer depend on policies that are business as usual," he said.

Sri Mulyani added that in order to achieve this target, economic transformation by encouraging an increase in productive investment that creates high added value is needed.

"The Macroeconomic Framework and the Principles of Fiscal Policy (KEM-PPKF) must continue to maintain investment attraction by continuing to maintain stability and predictability, improve equity and inclusiveness and must be sustainable," he said.

According to Sri Mulyani, to face the future and with valuable experience for the past two decades, it is necessary to formulate an adaptive, flexible, responsive, but credible and sustainable KEM PPKF.

"There is still a lot of homework and development agendas that need to be handled and completed. Great aspirations to realize the 2045 Golden Indonesia Vision require strong collaboration from all components of the nation," he explained.

Sri Mulyani said that her party is optimistic that with hard work and a shared commitment in maintaining economic stability and commitment to making policy breakthroughs, it is hoped that it can encourage higher economic growth.

"Economic growth, which is higher and quality in 2025, is estimated to be in the range of 5.1 percent-5.5 percent, supported by controlled inflation, continuation and expansion of downstream natural resources (SDA), development of the electric vehicle industry, and digitization supported by improvements in the investment climate and quality of human resources (HR)," he said.