Prabowo Optimistic Indonesia's Economy Will Grow 7% in 2025

6 hours ago 6

TEMPO.CO, Jakarta - President Prabowo Subianto claims that Indonesia's economy is on the right track and promising. According to Prabowo, as stated by experts, Indonesia's economic growth in the first half of 2025 is over five percent.

"It could even reach 7 percent by the end of this year or even higher," said Prabowo while presenting Indonesia's economic achievements and prospects in his speech at the plenary session of the St. Petersburg International Economic Forum (SPIEF) at the ExpoForum Convention and Exhibition Centre, St. Petersburg, Russia, on Friday, June 20, 2025.

Prabowo did not disclose the factors that could drive this economic growth. However, the retired TNI General emphasized that this achievement reflects the success of the government's economic policy direction.

With this foundation, Prabowo stated that significant targets will be achievable. "This shows that we have chosen the right path and are reaching our goals," the President said.

At the forum attended by global leaders and economic players, Prabowo presented four priorities of the current Indonesian government. There are food self-sufficiency, energy self-sufficiency, improving the quality of education, and accelerating industrialization. This former Minister of Defense also introduced the Investment Management Agency (BPI), Danantara.

The Central Statistics Agency (BPS) announced on Monday that Indonesia's economic growth in the first quarter of 2025 reached 4.87 percent annually (yoy). Gross Domestic Product (GDP) based on current market prices (ADHB) reached Rp5,665.9 trillion, while based on constant prices (ADHK) it reached Rp3,264.5 trillion.

American economist Arthur B. Laffer believes that Indonesia's economy can grow up to 8 percent, as targeted by President Prabowo Subianto. Arthur said government policies remain crucial to drive the economy to grow by up to 8 percent.

According to Arthur, for the economy to continue growing, appropriate incentives are needed. In various parts of the world, incentives have been shown to effectively boost the economy.

Arthur mentioned that bad economic policies would thwart the achievement of economic growth targets. Therefore, he reminded us of the need to adopt wise economic policies. "You know, the best people on earth, with bad economic policies, always fail," said the former advisor to U.S. President Ronald Reagan at the Economic Update 2025 event at Hotel Borobudur, Jakarta, on Wednesday, June 18, 2025.

Annisa Febiola contributed to the writing of this article

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