The government has set a target for Indonesia’s economic growth to reach 5.2% by 2025, with a long-term goal of 8% within five years. Coordinating Minister for Economic Affairs Airlangga Hartarto outlined three key strategies to support this growth: boosting investment, expanding export markets, and increasing labor-intensive industries. He shared these priorities during a meeting at the Ministry of Economic Affairs on Tuesday, October 22, 2024. The Technocratic Medium-Term National Development Plan (RPJMN) 2025-2029 targets growth between 5.6% and 6.1%, with per capita income rising from USD 5,500 in 2025 to USD 7,400–7,670 by 2029. Manufacturing's contribution to GDP is expected to increase from 20.8% in 2025 to 21.9% by 2029.
Airlangga mentioned that while plans to achieve 8% growth are still being developed, the government remains focused on ensuring that economic growth stays above 5% as outlined in the 2025 state budget. Hendri Saparini, an economist at the Center of Reform on Economics (Core) Indonesia, expressed optimism about the 8% target. He believes a shift from deindustrialization to industrialization, along with revitalizing industries, can help Indonesia achieve its goals. He emphasized the importance of learning from developed countries that experienced significant economic leaps through industrialization. Strengthening the manufacturing sector and fostering collaboration between state-owned enterprises and private sectors, including MSMEs, can create critical economic linkages for growth.
