Jakarta. Finance Minister Sri Mulyani admitted Wednesday that a 5-percent growth would not be enough for Indonesia to become a high-income country by its centennial in 2045.

Indonesia dreams of achieving a golden era in 2045. But the government is now aware that the dream will require a lot of work as Indonesia reported that its economy only expanded 5.05 percent in the second quarter of 2024.

“If you ask me, is a 5-percent growth enough? No, [it’s not enough] for us to become a high-income country,” Sri Mulyani told the House of Representatives in Jakarta on Wednesday.

Even so, the minister admitted that Indonesia still deserved praise for growing 5 percent amidst global economic turbulence. She listed protectionism, high interest rates, and geopolitical tensions as some of the challenges that Indonesia had to endure. Global fragmentation will also likely create a downside risk that can hamper economic growth, according to Sri Mulyani.

She added: “This makes the economy more unpredictable because the political sentiments and security situation can lead to a change in policies. That is why it is hard to make forecasts, especially on the variables that are prone to changes such as the rupiah exchange rate and its effect on the government bond yields.”

Even so, the government still insists on unlocking a 5.2 percent growth this year. To this end, it is planning to balance domestic demand while also looking out for opportunities in the current global economic situation. 

“We want to maintain household consumption and investments in various sectors,” Sri Mulyani said.