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Prabowo Aims For An 8% Growth In Indonesia's Economy, World Bank Reveals Scenarios

Indonesian President Prabowo Subianto has expressed his aspiration for the country's economic growth to reach 8% during his administration. However, this ambition has sparked considerable debate over time, despite the World Bank's continued optimism as reflected in its reports. 

On various occasions, Prabowo has articulated his desire for Indonesia's Gross Domestic Product (GDP) to achieve an 8% growth rate. This target is notably ambitious, with specific goals set for the next five years: 5.7% in 2025, 6.4% in 2026, 7% in 2027, 7.5% in 2028, and finally 8% in 2029. Recent information indicates that Coordinating Minister for Economic Affairs Airlangga Hartarto has revealed that President Prabowo Subianto has instructed his cabinet to meet the 8% economic growth target by 2027. 

Airlangga is confident that this goal is attainable through a formula that emphasizes consumption, investment, and exports, similar to the strategies employed in 1995 during the administration of Indonesia's second president, Suharto. 

"We understand that the president has set a high target of 8% growth for us to achieve by 2027 or 2028," stated Airlangga during the National Coordination Meeting 2024 in Jakarta on December 11, 2024. The World Bank, in its report titled "Funding Vision 2045," specifically addresses the target of 8% economic growth for Indonesia, presenting two scenarios for achieving this projection. 

The first scenario combines demand-side stimulus with structural reforms aimed at enhancing productivity (GovPlanFRTFP). The second scenario focuses solely on demand stimulus (GovPlanFR). According to the World Bank, significant aggregate demand stimulation is essential for the government to reach the 8% growth target within the next five years. 

Tag: Gross Domestic Product Prabowo Subianto