The government is pushing for investment growth that outpaces Gross Domestic Product (GDP) growth as a strategy to drive economic growth toward the 6 percent mark by the end of 2026.
Coordinating Minister for Economic Affairs Airlangga Hartarto considers this measure necessary, as the government still faces challenges in boosting economic growth to 6 percent by year-end. "In the first half of the year, we grew by 5.45 percent—the highest growth rate in the last 13 years and among the highest in the G20.
Looking toward the end of the year, the President has asked us to push for growth approaching 6 percent. Naturally, this presents a challenge and requires hard work," Airlangga said in a statement in Jakarta on Monday.
According to him, increasing investment is key to generating additional economic growth. Investment needs to grow faster than GDP and be directed toward projects that offer high added value. In addition to encouraging investment, the government intends to optimize the domestic value chain so that investment activities generate a greater impact on the economy.
Furthermore, enhancing human resource productivity and strengthening value-added exports—supported by logistical efficiency—are also key components of the growth strategy. At the same time, the government continues to face various external challenges, ranging from geopolitical dynamics, regional conflicts, and uncertainty in the Strait of Hormuz to trade wars that could potentially affect trade and investment. Despite facing global pressures, Coordinating Minister Airlangga affirmed that Indonesia's economic fundamentals remain solid. This is evidenced by state revenue, which grew by 21.3 percent year-on-year (yoy), while state expenditure rose by 18.2 percent (yoy). Meanwhile, the budget deficit remains under control at 0.91 percent of GDP.
