Jakarta – The government’s target under President Prabowo Subianto’s leadership to achieve 8 percent economic growth in the next five years is not a dream, but a plan based on in-depth studies and a commitment to make Indonesia a developed country by 2045.
This was conveyed by the Director of Investment Deregulation at the Ministry of Investment and Downstream/Investment Coordinating Board (BKPM), Dendy Apriandi.
“The 8 percent figure proposed by President Prabowo is not an arbitrary number, it is a very ambitious number, but it is a target that we must achieve,” said Dendy.
He emphasized that to achieve this target, investment and downstreaming are two important pillars that must be strengthened, considering that the contribution of both sectors to Indonesia’s economic growth reaches 32 percent.
Dendy also noted that from 2025 to 2029, Indonesia must boost incoming investment with an annual increase of IDR 300 trillion to IDR 400 trillion.
This increase is part of the government’s efforts to support downstreaming as the main strategy in accelerating the industrialization process and economic equality.
Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, added that downstreaming and investment are the spearheads of economic growth.
In his direction, Todotua stated the importance of collaboration to realize the realization of investment targets.
“The government, through the Ministry of PPN/Bappenas, has targeted investment realization of IDR 13,528 trillion in the next five years. Realizing this target requires hard work and collaboration between the center and regions.” He said/
Senior Consultant of the FEB Ul Management Institute, Toto Pranoto, on a separate occasion, also assessed that achieving the economic growth target of 8 percent is not impossible.
According to Toto, in addition to support from domestic investment, Indonesia must also utilize external financing sources.
“Mining downstreaming, especially nickel, has shown its extraordinary impact,” he said.
Toto gave an example of how the nickel downstreaming policy has significantly increased Indonesia’s export value. In 2013, exports of nickel ore and its derivatives only reached USD 5.4 billion, but in 2022, the export value jumped to USD 35.6 billion.
“Downstreaming can increase the added value of Indonesian commodities, which has a direct impact on economic growth,” said Toto.
Overall, investment and downstreaming are seen as the main keys for Indonesia in achieving higher economic growth targets and more equitable economic distribution throughout Indonesia.
