This figure is moderate, and it is our capital to gradually restore the high growth rate…Jakarta (ANTARA) - Chairperson of the Budget Committee of the House of Representatives (DPR) Said Abdullah has proposed an economic growth target of 5.4 percent for 2025.
Speaking after the DPR Plenary Session to open the 2024–2025 Session Period at the parliamentary complex here on Friday, he said the target is achievable and can be Indonesia's capital to restore the high economic growth rate recorded in the past.
"I hope that the government can agree on next year's growth target of 5.4 percent. This figure is moderate, and it is our capital to gradually restore the high growth rate, as expected by President-elect Prabowo Subianto," Abdullah said.
He noted that in the past, Indonesia's economic growth reached 6–7 percent.
While introducing the Financial Memorandum for the 2025 State Budget Bill, President Joko Widodo (Jokowi) proposed several macroeconomic assumptions.
The assumptions include an economic growth target of 5.2 percent, inflation maintained at 2.5 percent, and estimated yield on 10-year government bonds at 7.1 percent.
The assumptions further include estimated Indonesian Crude Price (ICP) of USD82 per barrel, and projected lifting of oil and natural gas of 600 thousand barrels per day as well as 1,005 million barrels of oil equivalent per day.
Abdullah said he is optimistic about the economic targets. He projected that the US central bank or the Fed would cut interest rates, eventually improving the rupiah exchange rate.
"I hope that the foreign exchange payment policy can also be more diverse, so that we can reduce our dependence on the US dollar. Thus, the exchange rate can be lower at the level of Rp15,900-Rp16 thousand per US dollar," he added.
In terms of fiscal policy, he said that the government must focus more on urgent programs amid the limited fiscal conditions.
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Translator: Bayu S, Kenzu
Editor: Rahmad Nasution
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