Airlangga Reveals Government's Strategy to Achieve 6% Economic Growth Target

Coordinating Minister for Economic Affairs Airlangga Hartarto outlined the Indonesian government's strategy to achieve a 6% economic growth target by 2027, emphasizing the nation's economic resilience amidst global uncertainties. He highlighted new growth engines based on transformation to reach this ambitious goal.

“

There are positive prospects for domestic economic growth, amid major turmoil such as geopolitics, energy prices, food prices, and high interest rates that continue to persist.

Hartarto pointed to positive domestic economic prospects despite ongoing global turmoil, including geopolitical tensions, energy and food price volatility, and high interest rates. International institutions project global economic growth to improve from approximately 2.8% this year to 3.1% in 2027. Indonesia's economy, however, demonstrated strong performance in the first half of the year, achieving 5.45% growth, the highest in 13 years, according to President Joko Widodo.

Several economic indicators reflect this strengthening. The Gini ratio decreased to 0.368 in March, and the open unemployment rate stood at 4.65% in May. Consumer confidence remained robust at 116.8, and the manufacturing PMI re-entered positive territory at 50.2. Activity in the real sector also saw increases, with the automotive sector growing 33.3% year-on-year, and electric and hybrid vehicle sales rising over 40%. Electricity consumption grew 10.8%, and cement sales increased by 13.5% year-on-year.

“

Indonesia's economy, as the President stated earlier, was the highest in the last 13 years in the first half, at 5.45 percent.

From the financial sector, third-party funds grew by 10.21%, credit increased by 12.67% annually, and investment credit saw a significant rise of approximately 24.9%. Indonesia's external resilience is also maintained, with foreign exchange reserves equivalent to about 5.5 months of imports and a positive cumulative trade balance from January to June. To support this growth and maintain public purchasing power, the government has implemented stimulus packages totaling Rp 70 trillion in the first quarter and Rp 26.34 trillion in the second quarter. These measures include tax incentives, transportation support, fee waivers, and food assistance programs.

“

The government continues to push to maintain purchasing power with stimuli issued totaling Rp 70 trillion in the first quarter and Rp 26.34 trillion in the second quarter.