Bappenas Proposes Two Economic Scenarios Of The Republic Of Indonesia 8 Percent To The Prabowo Government

Bappenas (Between)

JAKARTA - The National Development Planning Agency (Bappenas) proposed two scenarios to achieve 8 percent economic growth as targeted by President-elect Prabowo Subianto.

"The president (selected) has a vision that the economy will grow by 8 percent. This is permissible, we have a scenario," said Deputy for Economic Affairs of the Ministry of National Development Planning/Bappenas Amalia Adininggar Widyasanti quoting Antara.

According to him, Indonesia needs to achieve an average economic growth of at least 6 percent if it wants to get out of the middle-income trap.

With Prabowo's vision of pursuing economic growth of 8 percent, the target of leaving the middle-income trap is likely to be achieved more quickly.

"If you want 8 percent in the first five years (to serve), that's fine. Even better because it can speed things up. Our job at Bappenas is to execute it," he said.

As for the proposal, the first scenario is to pursue economic growth which increases slowly but consistently every year until finally it reaches 8 percent at the end of Prabowo's term of office.

"So, the first scenario is 8 percent at the end. The first year (2025) 5.7 percent, the second year (2026) 6.4 percent, the third year (2027) 7.0 percent, the fourth year (2028) 7.5 percent, and finally (2029) 8.0 percent, "he explained.

While the second scenario is designed to accommodate Prabowo's desire for acceleration in the third and fourth years of his term of office, to be precise 8.3 percent in 2027 and 8 percent in 2028. Meanwhile, in 2029 the growth will be in the range of 7.8 percent.

"Thus, the five-year average is expected to be around 7.7 percent," said Amalia.

CORE Indonesia senior economist Hendri Saparini also said that Indonesia must encourage high economic growth to jump out of the middle-income trap.

"We are facing a new government target that wants 8 percent. However, our average growth is getting lower and lower. We need to change this, because we need to go to 8 percent," said Hendri.

The current government through the 2025 State Budget Law targets economic growth of 5.2 percent next year.