ASIATODAY.ID, JAKARTA – The President of the Republic of Indonesia, Prabowo Subianto, targets Indonesia’s economic growth to reach 8% by 2029.
To achieve this, several main pillars of economic transformation will be maximized, including through industrial downstreaming, strengthening the digital economy, increasing employment and entrepreneurship, developing creative industries, continuing infrastructure development, and the energy transition.
“This target is not impossible considering that Indonesia achieved an average growth of 7.3% in the 1986-1997 period, even 8.2% in 1995. Apart from that, Indonesia is a successful country after Covid-19 which can maintain macroeconomic prudence, and besides that, it also reduces poverty rates and increases employment rates,” explained the Coordinating Minister for the Indonesian Economy, Airlangga Hartarto, at the National Leadership Meeting of the Indonesian Chamber of Commerce and Industry (KADIN). 2024 with the theme “Repress Poverty, Encourage Economic Growth, Create a Golden Indonesia”, in Jakarta, Sunday, December 1 2024.
In terms of infrastructure development, future policy is how to optimize its use to reduce ICOR or investment efficiency. As directed by President Prabowo Subianto, National Strategic Projects (PSN) which will be completed in the 2024-2025 period must continue to be pursued, and it is planned that 18 projects will be completed this year, while 30 more projects will be completed next year.
“There are several entrepreneurs here who get PSN facilities. I ask for this to continue to be encouraged and realized. Moreover, (one of) the tasks given by the President is to encourage food independence. We have developed food estates in Merauke, then encouraged those in Central Kalimantan, South Sumatra and North Sumatra. Private participation will of course be encouraged and the Government has provided facilities. “Indeed, the problem is how to employ workers for agricultural work outside Java, and in this case the Government has created the Ministry of Transmigration to encourage voluntary transmigration or workers (outside Java),” explained Enko Airlangga.
Airlangga said, in the midst of uncertain global economic conditions, the anticipatory step that must be taken is to deepen the structure of the national economy by maintaining and increasing the purchasing power of the middle class. The first step taken by the government was to increase the minimum wage by 6.5%.
Airlangga also mentioned that this December the Government will hold a National Online Shopping Day (Harbolnas), namely on 12-16 December 2024, so the Government is asking for support from entrepreneurs who are members of the Indonesian KADIN to make this activity a success.
“The government has also decided that domestic airline ticket prices will be reduced by 10% to encourage domestic tourism. Indonesia will also open (more) regional flights, the aim is to allow tourist destinations to enter again. “For example (direct flights to) the Tanjung Kelayang Special Economic Zone on Bangka Belitung Island or Labuan Bajo,” explained Airlangga.
Regarding digital economic transformation, the value of the digital economy in Indonesia currently reaches around US$90 billion, and next year it will be increased to US$120 billion, then in 2030 it will reach US$400 billion.
Among Asian countries, Indonesia is one of the leading countries in developing the digital economy, even in leadership in ASEAN in 2023, Indonesia is pushing for the Digital Economy Framework Agreement (DEFA).
“The digital economy is one way for us to jump, because we and other countries are on a level playing field. With a conventional-based economy, we have to compete from the same zero point. There is no multilateral cooperation in other parts of the world that has raised digital like ASEAN countries. Not in the EU, NAFTA, not even at OECD level. “Therefore, at last year’s OECD (meeting), I spoke about DEFA, and even the OECD wants to learn from ASEAN countries,” concluded Airlangga. (AT Network)
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