Indonesia can achieve 8% growth goal gradually: Economic adviser

Multi-pronged plan involves digitalisation and an export-oriented growth strategy

- Tan Tam Mei

Sceptics have doubted new Indonesian President Prabowo Subianto's ambitious goal of 8 per cent annual economic growth during his first term, up from about 5 per cent in recent years.

But the man enlisted by Mr Prabowo to lead a team to achieve that vision has a multi-pronged strategy for how that can be achieved.

"We can achieve that gradually," Mr Luhut Pandjaitan, Indonesia's newly appointed chairman of the National Economic Council (DEN), said on Nov 12 in an exclusive interview with The Straits Times.

He outlined plans to first digitalise and reform government services for better efficiency and transparency.

A second prong is an export-oriented growth strategy, aided by efforts to court investments.

These could help the nation meet the annual growth target of 8 per cent that President Prabowo has set the country to achieve by his third year in office.

Indonesia's economy has expanded by about 5 per cent annually over the past five years and enjoys relatively low inflation of below 3 per cent.

So the country is "still in good shape", said Mr Luhut, who attended the ST Asia Future Summit in Singapore on Nov 12, during which he delivered a special address and was part of a panel discussion.

The one-day forum organised by ST was attended by thought leaders, ambassadors and government officials.

Until recently, Mr Luhut was Indonesia's coordinating minister for maritime affairs and investment and a powerful focal point of the previous Joko Widodo presidency.

He is also a special adviser on digitalisation and government technology.

That background is a strength.

"I'm part of the previous government, so we learn from the past, and we make it better today," he said.