JAKARTA - Bank Permata economist Josua Pardede said that the benefits of the demographic bonus could open up opportunities for Indonesia to become a developed country so that human resource investment (HR) and capital investment will automatically increase.
According to Josua, if Indonesia fails to escape the middle economic snares when the demographic bonus ends, it is likely that the economy will mature before reaching its full potential so that many Indonesians will be trapped in the middle income class.
"Indonesia will take even longer to become a developed country," he told VOI, Tuesday, July 22.
Josua said that achieving 8 percent growth would be more appropriate if it became a long medium-term target.
"The target of 8 percent will probably be more appropriate if it becomes a long medium-term target," he said.
According to Josua, to achieve the 8 percent growth target, it will be very full of challenges and to get there there must be a driving factor, namely investment, accelerating structural transformation.
Therefore, Josua said that this process would take time that could not be fast. In addition, consumption and investment are 2 components of GDP with the highest share so that its performance greatly affects the performance of economic growth.
As for currently, consumption sharing is 55 percent and investment is around 30 percent, Josua said that if investment is boosted, then maybe investment contrubusi can reach 40 percent of GDP (average of several countries with high economic growth triggered by investment).
"So to reach 8 percent, consumption must grow in the range of 7 percent - 8 percent and investment must be able to grow double digits," he explained.
Previously, President-elect Prabowo Subianto admitted that he was betting with several ministers from other countries regarding Indonesia's economic growth which could grow to reach 8 percent during his leadership.
"If I am even more brave. We must dare to set higher targets. If I am optimistic we can achieve 8 percent growth. I bet with several ministers from a neighboring country," he said at the launch of the Geoportal Policy One Map 2.0 White Paper One Map Policy Beyond 2024, Thursday, July 18.
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But unfortunately, Prabowo was reluctant to reveal which country was betting on him. Prabowo said that if Indonesia's economic growth managed to reach 8 percent, the country's ministers would treat him to dinner.
"I don't mention which country. But there are several ministers from a country betting on me. He said your excellence, if you can achieve 8 percent growth, once, just once in five years to come, we reach 8 percent. They are going to buy me dinner. They will buy dinner for me!," he said.
Prabowo then accepted the bet. He is optimistic that the Indonesian economy will be able to grow by 8 percent. Because Indonesia is a big and rich country.
"I said 'your own'. If we reach 8 percent, you have to buy me dinner. Yes, we'll see. If I see, I am very optimistic. Our wealth is very large, our potential is very large," he said.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
