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Govt sticks to ‘unrealistic’ 8% GDP growth target
The government has reaffirmed its aim to reach 8 percent gross domestic product (GDP) growth by the end of President Prabowo Subianto’s term in office, a target economists view with skepticism.
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President Prabowo Subianto gestures when addressing his cabinet members during a meeting at the Presidential Office in Jakarta on May 5, 2025. (Antara/Galih Pradipta)
T
he government has reaffirmed its aim to reach 8 percent gross domestic product (GDP) growth by the end of President Prabowo Subianto’s term in office, a target economists deem ambitious or outright unrealistic.
Finance Minister Sri Mulyani Indrawati revealed in a plenary session with the House of Representatives on Tuesday that the government projected next year’s GDP growth to be in the range of 5.2 to 5.8 percent.
“This pace of growth is a strong foundation for growth to reach 8 percent in the upcoming years,” said the minister.
Sri Mulyani’s speech at the legislative complex marked the presentation of the Macroeconomic Framework and Fiscal Policy Points (KEM-PPKF), a document made available to the public and submitted to the House as a reference for drafting next year’s state budget bill within the next two months.
Laying out projections for the coming years, the 2026 KEM-PPKF puts GDP growth for 2029, Prabowo’s last year in office under the current term, in the range of 5.8 to 8 percent.
Eight percent economic growth is the target the former military general has been reiterating since he won the election back in February last year.
Sri Mulyani told reporters after her address that the government would keep evaluating the so-called “efficiency” measures this year, whereby the government set aside Rp 250 trillion (US$15.2 billion) for priority programs by making deep cuts to the budgets of ministries and other central and regional government institutions.
