Indonesia Aims for Higher GDP Growth with BRICS

Indonesia's economy grew steadily at 5.03% in 2024, consistent with its long-term trend, although falling short of the government's 5.2% target. Growth in the fourth quarter was 5.02%, driven by household consumption, investments, and a rebound in exports. Despite this steady growth, President Prabowo Subianto aims for a significant increase to 8% during his term, a level not seen since the mid-1990s. To stimulate growth, the government has introduced fiscal measures, including electricity rebates and public housing projects, and joined the BRICS organization to attract more investment. Challenges remain due to potential US tariffs and weakening global demand, prompting Bank Indonesia to cut interest rates twice to boost the economy. Overall, while Indonesia's growth is stable, it lags behind regional peers like Malaysia and Vietnam, indicating a need for more robust economic policies.