The concept, developed by Indonesian economist Sumitro Djojohadikusumo—the late father of President Prabowo Subianto—focuses on three main pillars: high economic growth, equitable development, and dynamic national stability.
In his speech at the fifth plenary session of the House of Representatives (DPR) on Tuesday, Purbaya acknowledged that the 8 percent growth target is ambitious, but still realistic if the government consistently implements its strategy.
He emphasized that the 2026 Draft State Budget has been designed as a catalyst for growth.
The government is aiming to accelerate economic activity, stimulate the real sector, and boost people’s purchasing power.
The state budget will support the private sector, which remains the main engine of growth.
High-value sectors will also be prioritized, while maintaining the resilience of strategic sectors that have proven robust under economic pressures.
“The growth of resilient sectors like agriculture, manufacturing, labor-intensive industries, and tourism will continue to be supported at high levels in order to contribute optimally to job creation,” he stated.
In addition, the government is continuing to strengthen the downstreaming of natural resources and offer fiscal incentives, including tax holidays and super tax deductions for research, training, and development in special economic zones.
These measures are expected to accelerate investment in high-value-added sectors and enhance Indonesia’s role in global supply chains.
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Translator: Bayu Saputra, Raka Adji
Editor: M Razi Rahman
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