Jakarta. Finance Minister Sri Mulyani acknowledged on Wednesday that 5 percent growth will not be enough for Indonesia to become a high-income country by 2045, the country’s 100th anniversary.
Indonesia dreams of achieving a golden age in 2045. But with the country reporting economic growth of just 5.05 percent in the second quarter of 2024, the government knows that realizing that dream will require significant effort.
“If you ask me if 5% growth is enough, no. [it’s not enough] “Achieving this goal is essential if we are to become a high-income country,” Foreign Minister Sri Mulyani told the lower house of parliament in Jakarta on Wednesday.
Still, he acknowledged that Indonesia deserves praise for growing by 5 percent amid global economic turmoil. He cited protectionism, high interest rates and geopolitical tensions as challenges Indonesia has had to endure. Global fragmentation is also likely to create downside risks that could impede economic growth, Sri Mulyani said.
She added: “The economy becomes more unpredictable as political sentiment and the security situation can lead to policy changes, making it difficult to forecast, especially when it comes to variables that are subject to change such as the rupiah exchange rate and its impact on government bond yields.”
Still, the government remains committed to achieving a growth rate of 5.2 percent this year. To this end, it plans to balance domestic demand while also looking at opportunities in the current global economic situation.
“We want to maintain household consumption and investment in various sectors,” Sri Mulyani said.
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