Indonesoan Investment Minister: Boosting Investment Key to Achieving 8% Economic Growth

JAKARTA, RAKYAT NEWS – The Indonesian Investment Minister Rosan Roeslani emphasized that increasing investment is crucial for achieving Indonesia’s ambitious 8% economic growth target.

He made this statement during the 15th Kompas CEE Forum, which was broadcast virtually.

Roeslani explained that past economic structures show that the largest contributions to growth come from domestic consumption and investment.

He highlighted the importance of a strong investment framework as the cornerstone of economic development.

“Historically, domestic consumption accounted for 57-58% of growth, and investment was over 30%. Currently, consumption is around 24%, while government spending contributes 8%, followed by exports,” he stated.

“Thus, the primary driver of growth must be investment.”

The 8% growth target aligns with the vision of newly elected President Prabowo Subianto, who believes it can be achieved within two to three years of his administration.

This ambitious target reflects a renewed focus on enhancing the investment landscape in Indonesia.

According to records, Indonesia has experienced 8% growth only five times since 1961, with an average growth rate of 5.11% over the past six decades.

These historical benchmarks highlight the challenges ahead for the new administration.

Senior economist Dradjad Wibowo, a member of the National Campaign Team for Prabowo, echoed Roeslani’s sentiments. He reiterated that the next government will heavily rely on private sector growth to meet this ambitious target.

Wibowo underscored the necessity of creating a favorable investment climate to stimulate economic expansion. He believes that encouraging private investment will be essential for sustained growth.

As the administration prepares to take office, there is a clear focus on policies that promote investment. This will be critical not only for reaching the 8% target but also for ensuring long-term economic stability. (Uki Ruknuddin)