“Like an airplane, we once aimed to take off in 1998 but were disrupted by global factors,” Hartarto said during the Indonesia Economic Outlook 2026 at Wisma Danantara here on Friday.
He explained that this target can be achieved by optimizing growth engines such as government and household spending, business investment, and the role of sovereign wealth fund Danantara, which must operate and mutually support one another.
According to him, growth is also supported by predictable policies and the financial system, including banks and capital markets. The government is also maximizing export performance with access to multiple countries.
“In the textile sector alone, if fully opened over the next 10 years, production is expected to increase tenfold, creating more employment opportunities,” Hartarto said.
With strong investment, simplified bureaucracy, and consistent law enforcement as directed by the President, the minister believes Indonesia has a solid foundation to enter an economic takeoff phase.
Amid global slowdown and stagnant world growth, Indonesia recorded the second-highest growth among G20 countries in Q4 2025 after India, with an annual growth rate of 5.11 percent.
Hartarto noted that economic development has been accompanied by improvements in social indicators, including lower poverty rates, improved Gini ratios, reduced unemployment, and increased labor absorption.
For 2026, economic growth is targeted at 5.4-5.6 percent, focusing on agriculture, manufacturing, digital, and energy sectors, alongside national flagship programs such as Free Nutritious Meals (MBG), Red and White Village Cooperatives (KDMP), and the Three Million Homes program.
“This is expected to be a source of growth that absorbs labor, accelerates productivity, and becomes a key driver for non-state budget financing, including through Danantara,” Hartarto said.
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Translator: Rizka, Kenzu
Editor: M Razi Rahman
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