BALINEWSID.COM, JAKARTA — Indonesia is targeting economic growth of 6% in 2027 and 8% over the medium term, with investment, productivity, and higher-value exports identified as key drivers of the country’s growth strategy.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government had identified three main conditions for achieving the targets: investment growth must outpace GDP growth, productivity and human capital quality must improve, and exports must generate greater added value while logistics efficiency is strengthened.

“Investment must grow faster than GDP, productivity and the quality of human resources must increase, and exports must become increasingly value-added while logistics become more efficient,” Airlangga said at the ANTARA Business Forum, “The Synergy Horizon – Positioning Indonesia for the Next Decade,” in Jakarta on Wednesday.

The government’s growth targets come amid continued uncertainty in the global economy. Three major risk channels remain a concern: energy and logistics disruptions caused by geopolitical conflicts; trade and investment pressures stemming from rising protectionism; and volatility in global financial and fiscal markets.

Despite the external challenges, Indonesia’s economic fundamentals have remained relatively resilient. The economy grew 5.45% year-on-year in the first half of 2026, while inflation stood at 3.19% in August 2026.

Investment realization reached 1,010.6 trillion rupiah in the first half of the year. Meanwhile, Indonesia’s Gini ratio declined to 0.368, the poverty rate stood at 8.07%, and the open unemployment rate was recorded at 4.65%.

To narrow the gap toward its higher growth targets, the government has prepared four main strategies.

The first is deregulation and the removal of investment bottlenecks through Government Regulation No. 28 of 2025 and Presidential Regulation No. 4 of 2026.

The second focuses on strengthening investment and financing through Special Economic Zones (SEZs), Danantara and public-private partnerships.

The third is aimed at improving productivity through internship and vocational training programs. The fourth involves expanding market access through trade agreements.

The government said 25 trade agreements have been implemented, while 13 others remain under negotiation, alongside Indonesia’s ongoing accession process to the Organisation for Economic Co-operation and Development (OECD).

The government is also strengthening energy security, the green economy and the digital economy as part of its long-term growth strategy.

Indonesia has more than 1,000 gigawatts of renewable energy potential, according to the government. The country’s energy transition is being supported through initiatives including the Just Energy Transition Partnership (JETP) and the Asia Zero Emission Community (AZEC).

In the digital sector, Indonesia has emerged as the largest digital economy in Southeast Asia. The government is seeking to further develop the country’s digital ecosystem through cross-border QRIS payments, data centers, artificial intelligence, semiconductors and digital talent.

Indonesia’s participation in global AI development has also expanded through its status as a founding member of the World AI Cooperation Organization (WAICO), which was signed in Shanghai together with 28 other founding countries.

On the investment front, the government is continuing to reform the business licensing system through the implementation of Service Level Agreements (SLAs) and the development of a risk-based Online Single Submission (OSS) system.

The measures are intended to provide businesses with greater certainty over licensing timelines while improving the responsiveness and efficiency of government services.

The government is also promoting more geographically balanced investment through Special Economic Zones and strengthening labor-intensive industries, particularly the textile and textile products sector.

Measures to support the textile industry include improving raw material supplies, harmonizing upstream and downstream policies, tightening import controls, and providing restructuring and financing support for industry players.

Indonesia is also continuing to deepen its integration with the global economy through its participation in the G20, ASEAN, RCEP and BRICS, as well as its accession processes for the OECD and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The government is also pursuing expanded trade cooperation, including the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), to widen market access, strengthen the competitiveness of Indonesian products and attract investment.

Airlangga said Indonesia’s large domestic market, abundant natural resources, demographic dividend, expanding industrial base and strategic position in the region provided a strong foundation for future growth.

“Going forward, policy direction must remain focused on quality investment, downstreaming, productivity improvement, competitiveness and expanded market access,” he said.