“The development target in the work plan is focused on high sustainable economic growth with a target of 6.3 percent,” National Development Planning Minister Rachmat Pambudy said at an online coordination meeting held by the Ministry of Home Affairs on Wednesday.
In addition to economic growth, Bappenas has set a number of development targets such as gross national income (GNI) per capita of US$5,870, a decrease in greenhouse gas (GHG) emission intensity of 37.14 percent, and an environmental quality index of 76.67 percent.
It will also strive to reduce the poverty rate to 6.5–7.5 percent, achieve a Gini ratio of 0.377–0.380, and a human capital index of 0.57.
The economic growth targets for western and eastern Indonesia in 2026 will be 6.1 percent and 7.1 percent, respectively. That way, the regional gap between provinces as well as central and regional governments could be reduced.
“The numbers that we project for 2026 are not impossible numbers. In fact, we can still increase these numbers with the support of all local governments, so our economic growth can be high, equality can be even higher, and inequality can decrease,” Pambudy said.
“And we hope that the welfare of our people will also increase," he added.
He explained that high economic growth is very important to increase regional income and per capita income, and thereby, improve people's welfare.
"Actually, we have experienced economic growth above 5 percent, and we have done it many times in the 70s, 80s, and even in the 90s, we have experienced growth above 8 percent. So, 8 percent growth (target for 2029) is not something magical, it is not impossible," he said.
Currently, Bappenas is preparing the 2026 Government Work Plan based on President Prabowo Subianto’s directive to ensure that the government budget is used for programs and activities that support job creation, technological breakthroughs, food and energy sufficiency, and productivity.
Productivity is expected to be increased through the Free Nutritious Meals program, creation of superior schools, acceleration of regional hospital projects, digital transformation, bureaucratic reform, ease of doing business, universal defense, and adaptive macroeconomic and fiscal stability.
Food and energy self-sufficiency will be supported by the implementation of food barns, development of renewable energy, and development of upstream and downstream drinking water supply systems (SPAM).
To achieve inclusive economic growth, natural resource downstreaming and poverty alleviation efforts will be expedited through the three million houses program and digitalization of assistance.
According to Pambudy, several strategies will be used to accelerate the achievement of the 2026 growth target.
They include increasing the productivity of export-oriented industrialization (downstream) and labor-intensive programs and raising agricultural productivity to build food self-sufficiency and energy self-sufficiency through green economy implementation.
The government will also seek to boost technological innovation through digital transformation, as well as increase productive investment, especially export-oriented foreign direct investment and non-state budget investment.
"These strategies need to be supported by licensing deregulation and stable macroeconomic conditions," he emphasized.
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Translator: M. Baqir Idrus Alatas, Yashinta Difa
Editor: Azis Kurmala
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