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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Economy & Trade

8% Economic Growth Requires Rp 13 Trillion Investment

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • Indonesia aims for 8% economic growth by 2029, requiring an estimated Rp 13,000 trillion in investment.
  • This investment target represents a 43% increase compared to the 2014-2024 period.
  • The government plans a gradual increase in economic growth and investment throughout the National Medium-Term Development Plan (RPJMN) 2025-2029.

Indonesia is setting an ambitious target of 8% economic growth by 2029, a goal that hinges on securing substantial investment. Minister of Investment and Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, stated that achieving this target, outlined in the National Medium-Term Development Plan (RPJMN) 2025โ€“2029, requires an estimated Rp 13,032.8 trillion in both foreign and domestic investment.

This investment figure represents a significant 43% increase compared to the Rp 9,117.4 trillion realized between 2014 and 2024. Roeslani emphasized that investment is the primary driver for economic expansion, as highlighted during a working meeting on the ministry's budget accountability for the 2025 fiscal year.

Year 2025 is the first year of implementing the RPJMN 2025โ€“2029, and investment has always been the main driver in order to achieve 8 percent growth.

โ€” Rosan RoeslaniExplaining the importance of investment for economic growth targets.

The government plans a phased approach to economic growth, with targets increasing incrementally throughout the RPJMN period. For 2025, economic growth is projected at 5.11%, supported by Rp 1,931.2 trillion in investments, exceeding the target. Projections for 2026 anticipate 5.4โ€“5.6% growth with Rp 2,041.3 trillion in investment, rising further to 5.8โ€“6.5% in 2027 with Rp 2,322 trillion.

To support this target, foreign investment and domestic investment are needed, reaching Rp 13,032.8 trillion for the period 2025โ€“2029.

โ€” Rosan RoeslaniDetailing the required investment amount.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.