Ahead of Financial Note, DPR Demands Job Creation
Translated from Indonesian, summarized and contextualized by DistantNews.
At a glance
- Indonesian lawmakers are pressing the government to ensure economic growth translates into tangible job creation.
- They argue that each 1% of economic growth should generate over 900,000 new jobs, as per economic expert calculations.
- The DPR is awaiting detailed contributions from various sources, including Danantara Investment Management, to achieve an 8% growth target by 2029.
Indonesian legislators are urging the government to prioritize job creation alongside the nation's reported economic growth. Despite Indonesia achieving a 5.4 percent economic growth in the first half of 2026, members of the House of Representatives (DPR) emphasize that this expansion must be felt by the public through increased employment opportunities.
Every 1 percent of economic growth must be able to create jobs. What is the number of jobs created? In which sectors?
Kamrussamad, a member of DPR Commission XI, stated that economic growth needs to be "quality," with each percentage point ideally creating over 900,000 new jobs, a figure based on calculations by economic experts. He stressed the need for the government to clearly identify the sectors driving job creation, including the impact of downstreaming programs.
This means that in the second quarter, the direction of our national priority program policies is starting to be felt, its impact on economic growth.
The legislator noted that the 5.29 percent growth in the second quarter of 2026 indicates the positive effects of national priority programs. However, he cautioned that achieving the ambitious 8 percent economic growth target by 2029 remains a significant challenge. This requires careful calculation of contributions from various sources, including the state budget (APBN), foreign direct investment (PMA), domestic investment (PMDN), and Danantara Investment Management.
To achieve 8 percent, we are calculating four sources. First, the push from the APBN; second, foreign investment or PMA; then domestic investment; and then the consolidation that has been carried out by Danantara.
Kamrussamad specifically requested Danantara Investment Management (DIM) to promptly submit its projected contribution to economic growth. He also called for enhanced cross-sectoral coordination and improved government communication to reduce market uncertainty. The DPR insists that government policies must maintain a balance between economic growth, job creation, and support for businesses, ensuring a pro-growth, pro-job, and pro-business approach.
This is what we have not yet received the calculation for in the DPR from the government, especially from Danantara. And we ask DIM (Danantara Investment Management) to immediately submit its contribution to economic growth.
Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.