Bambang Brodjonegoro, Special Adviser to the President for Economic Affairs and National Development, stated that Indonesia was able to achieve economic growth of 5.03 percent last year.
This was driven by consumption and spending related to the legislative and presidential elections in the first half of 2024, as well as regional head elections in the second half, he added.
“So, what will happen in 2025? There will be no local or national elections this year,” Brodjonegoro remarked.
He noted that the only potential drivers for this year's economic growth would be annual religious events, such as Ramadan, Eid al-Fitr, as well as Christmas and New Year celebrations.
“That’s it. This means we must find new sources of growth, particularly from a consumption perspective. I haven’t even touched on investment or exports yet,” he stated.
Brodjonegoro emphasized the need for the government to maintain people’s consumption at a certain level to achieve a growth rate of over 5 percent in 2025.
He stated that the government has introduced two priority programs to replace elections as key drivers of economic growth: the free nutritious meals program and the 3-million subsidized housing program.
He noted that these programs are expected to generate multiplier effects across various economic sectors and nationwide implementation, thereby creating more jobs and increasing income for the people.
For instance, the housing program for impoverished people would not only involve economic players in the construction sector but also in the manufacturing and logistics sectors due to the diverse materials required for building homes, such as cement, steel, glass, concrete, and bricks.
“As long as the government ensures these programs are inclusive —not restricted to government institutions or large corporations— they should also involve more small and medium enterprises across villages throughout Indonesia,” Brodjonegoro stated.
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Reporter: Uyu Septiyati Liman
Editor: Anton Santoso
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