The government has set itself a conservative gross domestic product (GDP) growth target of 5.4-6 percent in its 2020-2024 National Medium-Term Development Plan (RPJMN), which compares to the ambitious 8 percent target stipulated in the 2015-2019 plan.
The RPJMN 2020-2024 is scheduled to be released in late 2019, but the growth target is stipulated in a draft on the plan updated on May 7. According to the same document, the government aims for per-capita gross national income to reach between US$5,780 and $6,160 per year in 2024.
National Development Planning Minister/National Planning Agency (Bappenas) head Bambang Brodjonegoro said the country’s economic growth would still be affected by the global economic situation and the domestic economic transformation.
However, he stressed that the growth target showed the government was optimistic, based on rational considerations.
According to the document, the government anticipates weakness in the world economy and global trade due to slow growth in China and a monetary policy normalization that will move from the United States to European countries.
The government also sees a decline in the prices of commodities, particularly crude palm oil (CPO) and coal, according to the document, which also projects a widening current account deficit.
“To achieve high-quality economic growth in the next five years, improvement [through] structural transformation is key,” according to the 2020-2024 RPJMN draft, as quoted by on Tuesday.
It says the government needs to focus on boosting income per-capita income and reducing economic disparity in society to improve the resilience of low-income households in the face of economic fluctuation and to create more jobs to reduce the employment rate. (bbn)