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Indonesia needs 6-7% of economic growth to become developed country: Minister
Finance Minister Sri Mulyani says Indonesia needs to ramp up its economic growth to around 6 to 7 percent in order for the country to fulfill its ambition of becoming a high-income, developed country by 2045.
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Motorists commute during rush hour in Jakarta on Aug. 29, 2023. Finance Minister Sri Mulyani says Indonesia needs to ramp up its economic growth to around 6 to 7 percent in order for the country to fulfill its ambition of becoming a high-income, developed country by 2045. (AFP/Bay Ismoyo)
F
inance Minister Sri Mulyani said on Wednesday that the country's economy must grow between 6 and 7 percent to achieve its ambition of becoming a high-income or advanced country by 2045.
Currently, Indonesia’s economic growth hovers around 5 percent, with Statistics Indonesia (BPS) reporting 4.94 percent year-on-year (yoy) economic growth by the end of the third quarter and projecting the country’s 2023 economic growth to remain in the range of 4.5–5.3 percent.
This means that in order to meet the target of 6 to 7 percent growth, Indonesia will need to boost its economic growth by 1 to 2 percent.
"Structural reforms require hard work. A growth increase of 1 to 2 percent genuinely necessitates structural reforms," Sri told a public lecture at the Australian National University (ANU) in Canberra.
She added that there were numerous hurdles to be faced to achieve this growth target, such as the global financial crises, high inflation, geopolitical issues and climate change.
Sri said a combination of fiscal policies is needed to achieve this level of growth, by not solely relying on government resources, as high growth with a high budget deficit is unsustainable in the long term.
"Some infrastructure can be built by the private sector. So, it really requires a partnership between the government and the private sector,” she said.
