Saturday, 7 December 2019

Indonesia Pursuing US$7tn GDP, 7% Growth

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Laila Afifa

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  • TEMPO.CO, Jakarta - The government is relying on exports and investment to pursue a 7-percent growth target per year. That number is needed so that Indonesia can have a GDP of US$7 trillion by 2045.

    Right now, Indonesia has a GDP of just US$1 trillion.

    "This is an ambitious target, of course, it must be pursued in various ways," Rizal Affandi Lukman, deputy for international economic cooperation at the Coordinating Ministry for Economic Affairs, said at the Indonesia Economic Forum in Jakarta, Wednesday, November 20.

    To boost exports and investments, Rizal said the government is conducting trade negotiations with a number of countries. So far, 17 negotiations have been completed, 12 are ongoing, and 11 will begin soon.

    As of Q3/2019, Indonesia's economic growth was 5.02 percent. However, JP Morgan projects that the Indonesian economy will only grow 4.9 percent until the end of 2019.

    Rizal is aware of the situation. That's why, he said, the government strives to attract investment from other countries. On November 25, President Joko Widodo or Jokowi will make a visit to Busan, South Korea to attend the ASEAN-Republic of Korea Commemorative Summit. One of the agendas Jokowi will follow up on is Hyundai Motor Company's plan to invest US$1 trillion in Indonesia.

    Fajar Pebrianto