{
    "success": true,
    "data": {
        "id": 1673683,
        "msgid": "economist-outlines-sectors-to-drive-indonesias-economy-beyond-5-percent-1776059470",
        "date": "2026-04-13 11:31:34",
        "title": "Economist outlines sectors to drive Indonesia's economy beyond 5 percent",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "University of Airlangga professor Rahma Gafmi highlights key sectors including manufacturing, agriculture, household consumption, green energy, and digital technology to propel Indonesia's economic growth above 5 percent by 2026 amid global geopolitical uncertainties. She emphasises the need for government action in resource downstreaming, food security enhancements, infrastructure development, and attracting foreign direct investment to boost productivity and job creation. Coordinating Minister Airlangga Hartarto reinforces this optimism with strong domestic fundamentals, positive fiscal performance, and strategic policies like the B50 biodiesel programme, which could save up to Rp48 trillion.",
        "content": "<p>The government must activate all engines of growth through a\ncombination of traditional and high value-added modern sectors. Jakarta\n(ANTARA) - Professor Rahma Gafmi from the University of Airlangga\noutlined several sectors that need to be promoted so that Indonesia\u2019s\neconomic growth can exceed 5 percent in 2026 amid global geopolitical\nuncertainties. \u201cTo achieve the target of economic growth above 5\npercent, Indonesia cannot rely on just one sector. The government must\nactivate all engines of growth through a combination of traditional and\nhigh value-added modern sectors,\u201d she told ANTARA in Jakarta on Monday.\nRahma detailed first the processing industry or manufacturing sector,\nwhich remains the backbone of the national economy as it contributes\naround 19-20 percent to gross domestic product (GDP). Therefore, this\nsector needs to be encouraged to grow higher than the national economic\ngrowth. The focus for strengthening manufacturing is through\ndownstreaming natural resources such as nickel, copper, and bauxite into\nsemi-finished or finished products for export. In addition, building the\nbattery industry supply chain to vehicle assembly domestically is also\nconsidered crucial. The second sector is agriculture and food security,\nwhich is beginning to show its role as a new growth engine. In 2025,\nthis sector recorded growth above 5 percent, reversing the previous\ntrend which was below 2 percent. \u201cDon\u2019t forget the simplification of\nfertiliser and agricultural machinery distribution. Because that is\ncapital for increasing productivity. Implementation of programmes like\nfood barns so that food prices remain stable to increase domestic demand\nfor agricultural products,\u201d she said. The third sector is household\nconsumption, which contributes around 54 percent to GDP. She stated that\npeople\u2019s purchasing power must be maintained through food price\nstability and job creation. According to her, accelerating government\nspending realisation from the beginning of the year is also an important\nfactor in driving the economy. Infrastructure projects such as the\nconstruction of irrigation, reservoirs, small dams, as well as road and\nbridge repairs are considered capable of increasing money circulation\nwhile expanding employment opportunities through labour-intensive\nprogrammes. \u201cHigh growth targets require large capital flows (FDI) to\nus. There is a multiplier effect of creating new formal jobs,\u201d Rahma\nsaid. Then, the fourth sector, Rahma highlighted the role of the green\nenergy sector, particularly the development of renewable energy. The B50\nbiodiesel programme scheduled to start in July 2026, according to her,\nhas the potential to save up to Rp48 trillion if implemented optimally\nand on target. In addition, investment in the technology and digital\neconomy sector needs to continue to be encouraged because it has\nexponential growth potential and can become a new source of growth in\nthe future. Following the Government Working Meeting at the Presidential\nPalace Complex in Jakarta on Wednesday (8\/4), Coordinating Minister for\nEconomic Affairs Airlangga Hartarto stated that optimism for economic\ngrowth is supported by strong domestic fundamentals, particularly\nhousehold consumption which contributes around 54 percent to gross\ndomestic product (GDP). From the fiscal side, the state budget\nperformance up to the first quarter of 2026 also shows a positive trend.\nTax receipts up to March were recorded to increase by 14.3 percent to\naround Rp462.7 trillion, while the manufacturing sector is still in the\nexpansion phase. In addition, national food security is considered to\nremain maintained. Rice production in 2025 reached 34.7 million tonnes,\nwith Perum Bulog\u2019s rice stock currently around 4.6 million tonnes. The\ngovernment is also continuing to prepare strategic policies to maintain\nthe momentum of growth and economic stability, one of which is through\nthe implementation of the B50 Biodiesel Programme which will take effect\non 1 July 2026. \u201cThe B50 policy is estimated to provide budget savings\nof up to Rp48 trillion,\u201d Airlangga said. On the other hand, the\ngovernment is committed to maintaining fiscal discipline, including\nkeeping the debt ratio at 40 percent of GDP, below the maximum legal\nlimit of 60 percent. In addition, the budget deficit is also targeted to\nremain controlled around 3 percent until the end of the year.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/economist-outlines-sectors-to-drive-indonesias-economy-beyond-5-percent-1776059470",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}