Indef Still Sees Opportunity For Indonesian Economy To Grow 8 Percent, Here Are The Requirements

President Prabowo Subianto's promise to grow the economy to 8 percent in 5 years, is somewhat disturbed by the emergence of the World Bank projection which states the figure is only 4.8 percent in 3 years (2025-2027). 

However, the Head of the Center for Macroeconomics and Finance Indef, M Rizal Taufikurahman said, there is still an opportunity for the Indonesian economy to skyrocket to 8 percent in 2029. The condition is, this year the figure must not be below 5 percent. 

"This year is the spearhead. Because the economic target at the end of the period (2029) can be 8 percent. If this year's target is not achieved, it feels like next year, the challenge will be even harder to achieve that target," said Rizal in an online discussion in Jakarta, quoted Tuesday (4/29/2025). 

Furthermore, he gave a number of suggestions. First, the government must focus on implementing value chain-based reindustrialization. In the future, the government should not only focus on downstreaming, or downstreaming primary commodities. "Start moving to build an industrial ecosystem," he said. 

Second, he continued, is the reform and optimization of investment and taxation policies, such as more selective tax holidays to improvements to the online single submission (OSS) system. 

This option, he said, has been discussed in negotiations between Indonesia and the US Government. "The attractiveness of the Indonesian market is large, but unfortunately it is still not optimal, it has not become a magnet. Because the execution gap between policy design and realization in the field often occurs. Investors do not only need a 'red carpet', but what is more important is projectability and policy stability," explained Rizal. 

Third, Rizal suggested an increase in real wages and the provision of adaptive social protection. This is considered to be able to encourage quality consumption for the Indonesian people, especially the workforce. 

"Fourth, strengthen the domestic financial sector and inclusive financing. While the fifth policy recommendation is to maintain macroeconomic stability, which includes inflation, the rupiah exchange rate, and the fiscal deficit," he added. 

Tag: M Rizal Taufikurahman Said OSS Prabowo Subianto's US Government