RI's Bid to Escape 5% Growth Trap: Prospects Under the Next Govt

The Indonesian government aims to achieve a GDP growth rate of 5.3-5.6 percent by 2025, surpassing this year's target of 5.2 percent. Indonesia is strategically working towards breaking free from the five percent GDP growth 'curse' to escape the middle-income trap, especially given the challenges of an aging population.

Suharso Monoarfa, the National Development Planning Minister, highlighted that the 2025 Government Work Plan (RKP) theme is 'Accelerating Inclusive and Sustainable Economic Growth.' The year 2025 marks the beginning of Indonesia's long-term development plan, 'Indonesia Emas 2025-2045.'

"We have been trapped in the middle-income level for 30 years, and we plan to graduate from the middle-income trap by 2038, with an average growth rate of seven percent and a minimum of six percent. We aim to achieve this milestone by 2041," Suharso stated at the Presidential Palace in Jakarta on Feb 26.

Next year, the government targets a poverty rate between 6-7 percent, an open unemployment rate of 4-5 percent, and a Gini ratio of around 0.37. This year's targets for comparison are 6.5-7.5 percent for poverty, 5-5.7 percent for open unemployment, and a Gini ratio of 0.37 percent.