Indonesia's tepid 5.03% growth undermines Prabowo's 8% goal

Analysts call for more stimulus measures amid Trump risks, middle class woes

20250205 Jakarta commuters

Shrinking middle class and their weakening purchasing power cloud outlook for Indonesia's economic growth. (Photo by Yuki Kohara)

NANA SHIBATA

JAKARTA -- Indonesia's economy grew 5.03% in 2024, expanding at the slowest pace in three years, as demand ebbed from the country's shrinking middle class and its key export market, China, according to data released Wednesday.

The continued decline in growth poses major challenges to President Prabowo Subianto's goal of achieving 8% annual economic expansion by the end of his five-year term in 2029.

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