THE Indonesian economy is threatened by a 5% growth trap. The World Bank predicts Indonesia’s economic growth will only reach 4.8% in 2025 and 2026. However, historical data and forecasts from international institutions warn that Indonesia is trapped in a 5% growth stagnation. This figure is far from President Prabowo Subianto’s goal of achieving 8% economic growth in 2029.
After a year in office, Prabowo deserves to evaluate his work program. Why was the work program that created economic growth of up to 5.12% in the second quarter of 2025 not felt by the public until the massive demonstrations at the end of last August? Then, how can 8% economic growth be achieved if Indonesia’s economic engine is only capable of producing 5% growth?