TEMPO.CO, Jakarta - American economist Arthur B. Laffer shared confidence that Indonesia's economy can achieve an 8 percent growth rate, aligning with President Prabowo Subianto's ambitious target. Laffer, a former advisor to U.S. President Ronald Reagan, outlined several key factors that could drive this economic expansion.
"I am an economist, so I view everything from an economic perspective. Can Indonesia grow at 8 percent? Of course it can," Laffer said during the Economic Update 2025 event at Hotel Borobudur, Jakarta, on Wednesday, June 18, 2025.
One of the factors, he noted, is Indonesia's favorable demographics. The country has a large and well-educated, productive-age population. As of June 30, 2024, the Ministry of Home Affairs recorded approximately 196 million productive-age individuals, accounting for 69.68 percent of Indonesia's total population of 282 million.
However, Laffer emphasized that government policies remain crucial for achieving an 8 percent economic growth. He stressed the need for appropriate incentives, which have consistently proven effective in boosting economies worldwide.
Poor economic policies, he warned, would hinder the achievement of this growth target. Thus, he noted the importance of implementing truly wise economic strategies. "You know, the best people on this earth, with bad economic policies, always fail," he asserted.
President Prabowo has consistently expressed his strong belief that Indonesia is capable of achieving an 8 percent economic growth target, reiterating this optimism on several occasions.
To reach this ambitious goal, he underlined that economic management must be efficient, logical, and based on accurate calculations. He stressed the imperative to eliminate wastefulness and inefficient practices. "No organization can survive if expenses exceed income. Therefore, I am determined to lead an efficient government," Prabowo declared.
Indonesia's economic growth in the first quarter of 2025 actually slowed. The Central Statistics Agency (BPS) reported that the economy grew by only 4.87 percent annually, a decrease from the previous quarter's 5.02 percent annual growth.
Editor's Choice: World Bank Lowers Indonesia's 2025 Growth Forecast to 4.7%
Click here to get the latest news updates from Tempo on Google News
FIFA Honors Indonesia's PSSI with FIFA Forward Gold Award
1 jam lalu
FIFA and PSSI signed a Host Country Agreement to establish the FIFA Regional Office for Southeast Asia and East Asia in Jakarta.
Iran-Israel Conflict Escalates, Asian Countries Move to Evacuate Nationals
1 jam lalu
A number of Asian countries are starting to evacuate their citizens from Israel and Iran amid the conflict between the two nations.
Sri Mulyani Warns of Escalating Iran-Israel Conflict Impact on Indonesian Economy
3 jam lalu
Sri Mulyani, Indonesia's Finance Minister, has warned of the potential impacts of the Iran-Israel conflict on the Indonesian economy.
Serious Threats Facing Mangrove and Coastal Ecosystems on Pari Island, Indonesia
3 jam lalu
An investigation is being launched into the damage to mangrove & coastal ecosystem in Pari Island, one of the islands in Thousand Islands, Indonesia.
Prabowo Seeks National Stability in Aceh Islands Dispute Resolution, Minister Says
5 jam lalu
The Prabowo-led government upholds the legal certainty of these four islands while maintaining stability, particularly in Aceh and North Sumatra.
Wali Nanggroe Hopes Aceh Flag Will Be Legalized After 4 Island Dispute Resolved
5 jam lalu
Wali Nanggroe Aceh Malik Mahmud Al Haythar hopes for the endorsement of regulations regarding the raising of the Aceh flag.
Prabowo, Trump Hold 15-Minute Call Ahead of Singapore and Russia Visits
18 jam lalu
Here's what Prabowo and Trump discussed in their 15-minute call before state visits to Singapore and Russia.
G7 Summit Wrap-Up: Trump's Abrupt Departure and Prabowo's No-Show
21 jam lalu
The G7 Summit attended by seven permanent countries, namely Canada, France, Germany, Italy, Japan, the UK, and the US
Indonesian Govt Preparing Blueprint for Pantura's Giant Sea Wall, Minister AHY Says
22 jam lalu
The government is preparing a blueprint for the construction of a giant sea wall along the northern coast of Java, from Banten to East Java.
KPK Believes Higher Judge Salaries Could Help Prevent Corruption
22 jam lalu
KPK states the need for a system to shield judges from corruption. Salary increase is seen as a measure to prevent corruption.
