Jakarta, CNBC Indonesia – President Jokowi has ambitions to make Indonesia’s economy skyrocket and fly high. During the 2014 campaign period, Jokowi targeted economic growth of above 7 percent. Almost 10 years have passed, Jokowi’s ambitions are now only dreams.
Contrary to Jokowi’s expectations, Indonesia’s economy could only grow by an average of 4.12% in 2014-2015.
The Indonesian economy did soar to a level of 7.08% (yoy) in the second quarter of 2021. However, the growth spurt was due more to a very low accounting base. In the second quarter of 2020, Indonesia’s economy shrank by 5.32% (yoy) hit by the start of the pandemic.
Economic growth has even deviated far from the target in the 2020-2024 National Medium-Term Development Plan (RPJMN).
In the RPJMN document it is stated that Indonesia’s economy is estimated to reach 6% in 2022 in an optimistic scenario, while in a moderate scenario at 5.7%. In fact, Indonesia’s economy only grew 5.31%.
In the last three years (2020-2022), economic realization has deviated far from the optimistic and moderate scenario in the RPJMN.
The opposite condition even occurred in 2020 when the Indonesian economy was hit by the Covid-19 pandemic.
One of the factors causing economic growth to miss the target in 2020-2022 is investment growth which is far below average. Investment is expected to grow 6.6% -7% but it only grows in the range of 3%.
In terms of business sector, the main ballast is in the construction sector. The sector which was expected to grow at around 6% only increased by 2%.
Check out the complete comparison data between the target and the realization of Indonesia’s economic growth during Jokowi’s leadership period in CNBC Indonesia’s research.
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