The European Union (EU) Ambassador to Indonesia and Brunei Darussalam, Denis Chaibi, has expressed support for Indonesia's ambitious economic growth target of 8%, set by President Prabowo Subianto's administration. Speaking at the 2024 Indonesia-Europe Investment Summit in Jakarta on December 9, Chaibi remarked that if achieved sustainably, this growth could elevate Indonesia's per capita income to USD 25,000, positioning the nation as a developed economy by 2045. Chaibi highlighted that similar growth rates have been recorded in several Asian countries, including China, South Korea, Singapore, and Vietnam, demonstrating its feasibility. He also praised Indonesia's economic performance over the past two decades, noting that achieving a 5% growth average would be challenging for the EU bloc.
Chaibi further emphasized Vietnam’s successful economic model as a blueprint for Indonesia, citing the combination of foreign direct investment (FDI) and integration into the global value chain as critical drivers of growth. He explained that FDI significantly contributes to manufacturing growth through technology transfer, particularly in export-oriented industries. However, Chaibi argued that deeper integration into global value chains could yield even greater benefits, enhancing logistics flows, improving supply chain management, and boosting productivity. These advancements, he noted, would create significant employment opportunities and strengthen Indonesia’s economy.
