"The President (elect) has a vision of the economy to grow eight percent, and we have (proposed) scenarios for that," the agency's Deputy for Economic Affairs, Amalia Adininggar Widyasanti, stated during a national seminar held by the Center of Reform on Economics (CORE) Indonesia here on Wednesday.
Widyasanti underscored the need for Indonesia to achieve an average economic growth of at least six percent if it wants to escape the middle-income trap.
With Prabowo's vision of pursuing eight percent economic growth, the target of escaping the middle-income trap can likely be achieved faster.
"If you want eight percent in the first five years (in office), that is fine. It is even better because it can speed things up. Our job at Bappenas is to execute that," she remarked.
Regarding the proposal, the first scenario is to pursue economic growth that increases slowly but consistently every year until it finally reaches eight percent at the end of Prabowo's term.
"Hence, the first scenario is eight percent at the end. The first year (2025) is 5.7 percent, the second year (2026) is 6.4 percent, the third year (2027) is 7.0 percent, the fourth year (2028) is 7.5 percent, and the last year (2029) is 8.0 percent," she explained.
Meanwhile, the second scenario is designed to accommodate Prabowo's aspiration to accelerate growth in the third and fourth years of his term, precisely 8.3 percent in 2027, eight percent in 2028, and the range of 7.8 percent in 2029.
"Thus, the average for the five years is expected to be around 7.7 percent," Amalia noted.
Senior economist at CORE Indonesia Hendri Saparini also emphasized that Indonesia should push for high economic growth to escape the middle-income trap.
"We are facing a new government target of eight percent. However, our average growth is getting lower and lower. We need to change this condition because we need to move towards eight percent," she noted.
Based on the law concerning the 2025 State Budget, the government is targeting economic growth of 5.2 percent next year.
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Translator: Imamatul Silfia, Yashinta Difa
Editor: Rahmad Nasution
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