Indonesia’s GDP Growth Will Miss Prabowo’s 8% Target, BMI Says

Indonesia’s long-term growth will be stunted by factors ranging from US tariffs and high youth unemployment to President Prabowo Subianto’s decision to expand the powers of the military, according to research firm BMI.

Gross domestic product will likely expand by an average 4.8% through 2034, well below Prabowo’s goal of 8%, BMI, a unit of Fitch Solutions, said in a research note Friday. That’s also slower than the 5.1% non-pandemic average over the past decade, it said.

Southeast Asia’s largest economy has failed to replicate the export-led growth of China and other regional neighbors, while local manufacturing is ...