Minister Suharso Reveals Indonesia’s GNI per Capita Target in 2025

Minister of National Development Planning/Head of Bappenas, Suharso Monoarfa attended a working meeting with Commission XI of the House of Representatives, discussing the theme of the Government Work Plan (RKP) Year 2025, Wednesday (28/08/2024).

The minister said that the theme of the 2025 RKP is ‘Accelerating Inclusive and Sustainable Economic Growth’ with an economic growth target in the range of 5.3% to 5.6%. According to him, this target is the basis for calculations to achieve the GNI per capita target in 2025.

‘The GNI per capita target in 2025 is the initial foundation in achieving the Golden Indonesia Vision 2045. The GNI per capita target in 2025 is in the range of US$ 5,500 – 5,520,’ said the Minister.

‘These figures will be an important reference in designing policies and strategies to accelerate the pace of inclusive and sustainable economic growth,’ he added.

On the occasion, the Minister also compared Indonesia’s GNI per capita position with other countries in 2023. According to him, Indonesia’s GNI per capita is still relatively behind when compared to China, Malaysia, and Brazil.

‘Based on the latest data, China’s GNI per capita reached US$ 13,400, Malaysia’s US$ 11,970, and Brazil’s US$ 9,070,’ the Minister explained.

The Minister also highlighted the importance of learning from Brazil’s experience. During the period 2003 to 2013, Brazil experienced a significant increase in GNI per capita, driven by exports of key commodities such as iron ore, oil, and soya beans.

‘In 2013, Brazil made it into the high-income category with a GNI per capita of US$12,750. However, the decline in global commodity prices in 2014 led to a decline in Brazil’s GNI per capita until 2016, given the country’s dependence on commodity exports,’ he said.

To avoid a similar situation, the Minister emphasised the importance for Indonesia to strengthen the domestic economy and reduce dependence on global commodity price fluctuations and geopolitical uncertainty.

‘Strengthening the domestic economy will help increase resilience to external shocks and ensure more stable and sustainable growth,’ the Minister explained.

The Minister hopes that all parties will continue to commit to supporting the implementation of policies that support inclusive and sustainable economic growth, and work together in realising the Golden Indonesia Vision 2045.

Source: Bappenas