Jakarta (ANTARA) \u2013 Fithra Faisal Hastiadi, an expert at the\nGovernment Communications Agency (Bakom), said the challenge facing\nPresident Prabowo Subianto and Vice-President Gibran Rakabuming\u2019s\nadministration in its third year would be to turn growth momentum into a\nmore productive and sustainable structural transformation.<\/p>\n
He said the challenge was growing amid global economic uncertainty\ndriven by geopolitical developments, energy price volatility,\ninflationary pressures and movements in international financial\nmarkets.<\/p>\n
\u201cIf the first two years were a phase of laying the foundations, the\nthird year must be a moment to strengthen the multiplier effects of that\ntransformation,\u201d Fithra told ANTARA in Jakarta on Tuesday.<\/p>\n
The University of Indonesia economist said the government needed to\nensure that growth was reflected not only in gross domestic product\n(GDP) figures, but also in higher national productivity, quality job\ncreation and stronger public purchasing power.<\/p>\n
Fithra said investment developments were one positive signal for\nIndonesia\u2019s economy. In the first quarter of 2026, investment growth,\nmeasured by gross fixed capital formation (GFCF), reached 5.96 per cent,\nexceeding economic growth of 5.61 per cent.<\/p>\n
The trend continued in the second quarter of 2026, when GFCF grew by\n6.87 per cent, while Indonesia\u2019s economy expanded by 5.29 per cent.<\/p>\n
He said this indicated strengthening on the supply side of the\neconomy. However, higher investment needed to be accompanied by\nproductivity gains to generate broader economic benefits.<\/p>\n
Fithra explained that productive growth in production capacity could\ngenerate income, create employment opportunities and establish new\nsources of demand in the economy.<\/p>\n
The government therefore needed to ensure incoming investment\ndeepened the industrial structure and increased economic value added,\nrather than merely expanding production capacity.<\/p>\n
Fithra said this agenda needed to align with the development\npriorities in Asta Cita. Industrialisation, part of the fifth Asta Cita\npriority, should go hand in hand with human resource development under\nthe fourth priority and the creation of quality jobs, which is part of\nthe third.<\/p>\n
He said policy coordination was important to ensure that investment\nin people and stronger production capacity reinforced one another.<\/p>\n
At the macroeconomic level, the government needed to balance faster\neconomic growth with the credibility of fiscal and monetary policy.<\/p>\n
Fithra said economic transformation required the courage to take\nmajor steps, but the sustainability of the agenda would still depend on\ndisciplined economic management.<\/p>\n
He stressed that the administration\u2019s success in its third year\nshould be judged by the extent to which its policies strengthened the\nfoundations for long-term development.<\/p>\n
He hoped economic transformation would give Indonesia a stronger,\nmore independent and productive economic structure, while delivering\nmore widely shared prosperity.<\/p>\n
\u201cThe measure of a government\u2019s success is not how quickly the economy\ngrows in one or two years, but how far its policies can change the\nnation\u2019s development trajectory for the next one or two generations,\u201d he\nsaid.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bakom-calls-for-structural-economic-transformation-in-prabowos-third-year-1792479166", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }