Channel NewsAsia

Indonesia's Widodo sets 7% economic growth target

Indonesia’s president-elect Joko Widodo has set a seven per cent economic growth target for 2014 to 2019, according to Akbar Faizal of the Jokowi-JK Transitional Office.

JAKARTA: Indonesia’s president-elect Joko Widodo has set a seven per cent economic growth target for 2014 to 2019, according to Akbar Faizal of the Jokowi-JK Transitional Office.

"To achieve the target, we need infrastructure investment worth at least RP6,500 trillion (S$690 billion)," Indonesia's Antara news agency reported on Friday (Aug 22), citing Faizal.

He explained that 25 per cent, or RP1,638 trillion, of the money needed for the infrastructure investment would be funded by the State Budget (APBN). The remaining 75 per cent must be collected from other parties, such as state-owned enterprises and private companies.

Indonesia's economic growth over the past five years has been five per cent, with the budget allocation for infrastructure development hovering at four to five per cent of the Gross Domestic Product (GDP), Faizal said.

Meanwhile, the growth rate of Indonesia`s infrastructure investment was considered low, compared to India, which has reached seven per cent of its GDP since 2009, while China was at nine to 11 per cent in 2005.

The development of infrastructure is vital for Indonesia's economic growth because it has an effect on all economic activities, he added. Therefore, Widodo and his running mate Jusuf Kalla will take a new approach in the management of the nation`s infrastructure, according to Faizal.

Widodo and Kalla will also work to boost productivity and competitiveness at the national and international levels.

According to Antara the next government will seek to increase electricity by at least 35,000 MW, and construct 2,000 kilometres of new roads.

It will also build or renovate 10 seaports and airports, 10 new industrial zones and housing complexes for workers, build 5,000 traditional markets, and modernise old markets.

Tweet photos, videos and updates on this story to  @channelnewsasia