BALINEWSID.COM, JAKARTA — The Indonesian government is preparing a strategy to achieve 6 percent economic growth in 2027 by boosting investment, worker productivity, value-added exports and strategic industries amid continued global economic uncertainty.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government is also targeting inflation of 2.5 percent in 2027. He outlined three conditions that need to be met to support the growth target: investment growth must outpace GDP growth, productivity per worker must increase, and exports must generate greater added value while being supported by efficient logistics.

“For 2027, we are targeting 6.0 percent growth and 2.5 percent inflation. Three conditions must be met: investment growth must exceed GDP growth, productivity per worker must be higher, and exports must have greater added value, supported by efficient logistics,” Airlangga said at the HSBC Summit 2026: Mobilising Growth in a New Global Order on Tuesday (Sept. 29, 2026).

The targets come as the global economy continues to face significant uncertainty. The government identified three major risk channels: energy and logistics, trade and investment, and financial markets.

Despite external pressures, Indonesia’s economy grew 5.45 percent year-on-year in the first half of 2026. Inflation stood at 3.19 percent in August, while the poverty rate was recorded at 8.07 percent, the Gini ratio at 0.368 and the unemployment rate at 4.65 percent.

Investment activity has also become increasingly widespread across the country. Some 50.2 percent of realized investment in the first half of 2026 was located outside Java. Indonesia also maintained its BBB sovereign credit rating with a stable outlook from S&P, according to the government.

Four Strategies to Support Growth

The government has prepared four main strategies to support its economic growth targets.

The first is deregulation and debottlenecking based on Presidential Decree No. 4 of 2026. The second is strengthening investment and financing, while the third focuses on improving workforce productivity and skills through apprenticeship programs targeting 150,000 participants and 220,000 vocational graduates.

The fourth strategy is to expand market access and economic diplomacy. The government said 25 trade agreements have been implemented, while another 13 agreements remain under negotiation.

To support its longer-term target of achieving 8 percent economic growth by 2029, the government is also optimizing its policy mix. Fiscal policy will serve as a catalyst, while monetary policy will focus on maintaining stability and encouraging bank financing.

Danantara and the private sector are also expected to play a role in accelerating investment. Key growth sectors include electric vehicles, digitalization, semiconductors, artificial intelligence, agriculture and energy.

Investment Reaches Rp1,010 Trillion

Realized investment in the first half of 2026 reached approximately Rp1,010 trillion, up 7.2 percent from the same period a year earlier, according to the government.

The investment generated around 1.4 million jobs. Foreign direct investment accounted for 50.2 percent of the total, while domestic investment contributed 49.8 percent.

The government is also seeking to improve the investment climate through regulatory simplification and greater certainty in public services. One measure is the implementation of Service Level Agreements to make risk-based approval and licensing processes more efficient.

Efforts to remove regulatory obstacles are being strengthened through a Deregulation Task Force. The government said the task force has resolved 135 of 177 complaints related to regulatory and investment barriers.

The government is also continuing to develop Special Economic Zones (SEZs) as new centers of investment and economic growth. Indonesia currently has 25 SEZs covering nearly 24,000 hectares across sectors including manufacturing, tourism, health, education, technology, digital services and other industries.

Digital Economy and Global Market Access

Digital transformation is another key foundation of the government’s growth strategy. Airlangga said QRIS has been adopted by 61 million users and 44 million merchants, while Indonesia’s digital economy is approaching US$100 billion in value.

The government is seeking to develop an integrated digital value chain covering data centers, artificial intelligence, semiconductors and digital talent development.

Indonesia is expected to need around 9 million digital workers by 2030, or approximately 600,000 professionals each year. The Nongsa area, meanwhile, is targeted to create more than 8,000 technology-related jobs.

The government is also using SEZs to strengthen digital talent development. An education-focused SEZ in Malang has become home to King’s College and is expected to soon host the India Institute of Management Bangalore.

Labor-intensive industries remain another focus. Indonesia’s textile and footwear industries employ around 4 million workers and generate approximately US$12 billion in exports.

On international trade, the government is strengthening Indonesia’s position through the G20 and its accession process to the Organisation for Economic Co-operation and Development (OECD), which is nearly 80 percent complete. Indonesia is also pursuing membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Airlangga said economic indicators ultimately need to translate into tangible benefits for the public.

“Numbers alone do not create prosperity. What matters most is turning investment, technology and reform into jobs, productivity and better lives for our people,” Airlangga said.