Pursuing 8% Economic Growth in the Prabowo-Gibran Era

Burhanuddin Abdullah, Head of the Expert Council for the National Campaign Team (TKN) of the elected President and Vice President, Prabowo Subianto-Gibran Rakabuming Raka, is optimistic that Indonesia's economic growth can reach the target of 8% in the 2025-2029 period. This was stated in the *UOB Economic Outlook 2025* in Jakarta on Thursday (26/9/2024).

Based on data from the Central Statistics Agency (BPS), the domestic economy previously grew by up to 8% (year-on-year/yoy) only in 1995. After the 1998 crisis, the highest economic growth was only 6%. Even post-Covid-19 pandemic growth was only around 5%.

Meanwhile, economic growth in the first half of 2024 was 5.05% (yoy). The growth target included in the 2025 State Budget (APBN) is 5.2% (yoy).

(See also: IMF Predicts Indonesian Economy to Grow 5% in 2024 and 5.1% in 2025)

One of the drivers for economic growth to reach 8% is the strong role of the manufacturing sector as the locomotive of the domestic economy. Unfortunately, the processing industry has not been able to become the engine of Gross Domestic Product (GDP) growth.

The processing industry, which contributes the most to national GDP, has actually shown a decline in the last decade. From 21.08% in 2014, it gradually decreased to only 18.67% of GDP.

The following is the growth of the processing industry (yoy) from 2014-2023:

* 2014: 4.64%
* 2015: 4.33%
* 2016: 4.26%
* 2017: 4.29%
* 2018: 4.27%
* 2019: 3.8%
* 2020: -2.93%
* 2021: 3.39%
* 2022: 4.89%
* 2023: 4.64%

The following is the national GDP growth (yoy) from 2014-2023:

* 2014: 5.01%
* 2015: 4.88%
* 2016: 5.03%
* 2017: 5.07%
* 2018: 5.17%
* 2019: 5.02%
* 2020: -2.07%
* 2021: 3.7%
* 2022: 5.31%
* 2023: 5.05%

(See also: Data on Debt Ratio and Economic Growth in Indonesia during Jokowi's Era)