UGM Economist Reveals Challenges in Achieving 8 Percent Economic Growth
JAKARTA — Indonesia’s government-set target of 8 percent economic growth is considered ambitious and faces several structural challenges, according to economic experts.
Economists argue that given current economic conditions, achieving such a growth rate is difficult in the near term. Akhmad Akbar Susamto, a lecturer at the Department of Economics at the Faculty of Economics and Business at Universitas Gadjah Mada (UGM), stated that whilst all parties desire high economic growth, the 8 percent target remains considerably distant from Indonesia’s current structural economic conditions.
According to him, the Indonesian economy has demonstrated resilience amid various global dynamics. However, several structural factors continue to constrain growth, making it difficult to achieve a significant leap in the short term.
The government itself targets Indonesia’s economic growth to reach 8 percent in the coming years as part of its national economic development agenda. The Head of State has expressed optimism that this figure could be achieved or even exceeded given Indonesia’s economic potential.
Meanwhile, the government is also preparing strategies to accelerate growth through increased investment, domestic consumption, and strengthening of the industrial sector. The Coordinating Minister for Economic Affairs, Airlangga Hartarto, previously stated that the 8 percent economic growth target can be achieved by utilising various growth drivers, including household consumption, investment, and increased exports.
In various national economic policy calculations, the realisation of investment required to achieve 8 percent growth is estimated to reach approximately Rp 13.032,8 trillion during the 2025–2029 period. This investment is expected to come from both foreign direct investment and domestic investment.
Although high economic growth targets frequently become aspirations in development planning, Indonesia’s historical achievements demonstrate that such figures are not easily attainable.