Indonesia could achieve its target of 8% economic growth by 2029\nthrough consistent and sustained efforts. The target is ambitious, but\nthe country recorded growth of 9.9% in 1980 and averaged 6.8% between\n1986 and 1996.<\/p>\n
The 1980 performance was supported by an oil boom, while growth from\n1986 to 1996 was driven by investment and export performance. An average\ngrowth rate of 8% requires a long-term commitment. The US-ASEAN Business\nCouncil (USABC) says its experience in ASEAN countries such as Vietnam\nshows that sustained growth targets are backed by top-level leadership,\ntranslated into policy and adopted as a shared reference point by\nministries and provincial governments.<\/p>\n
Against this backdrop, the USABC has published a white paper\ncontaining eight recommendations to support Indonesia\u2019s growth target.\nThe recommendations are based on the experience of member companies, the\ncouncil\u2019s dialogue with the government throughout the year and\ndiscussions at the Indonesia Business Mission (IDBM) on 27\u201328 October\n2026.<\/p>\n
The eight recommendations are:<\/p>\n
Modernise import processes by simplifying requirements, setting\nrealistic deadlines and establishing clear monitoring and escalation\nmechanisms.<\/p><\/li>\n
Strengthen confidence in standards and certification through\ntransparent criteria, recognition of assessments by credible foreign\nbodies and expanded accredited testing capacity.<\/p><\/li>\n
Improve the government\u2019s technical certainty in the digital\nsector by conducting trials before broad implementation and making\nproductive and secure use of artificial intelligence, cloud computing\nand cybersecurity.<\/p><\/li>\n
Increase regulatory certainty through meaningful consultation,\nclear implementation guidance, adequate transition periods and\ncoordination between central and regional governments.<\/p><\/li>\n
Position the government as a long-term investment partner through\nthe Investment Coordinating Board (BKPM), while strengthening mechanisms\nfor resolving problems and escalating issues.<\/p><\/li>\n
Expand knowledge transfer and build local capacity through\ncommercial partnerships and alignment of domestic content requirements\n(TKDN) with the capabilities of local industry.<\/p><\/li>\n
Balance foreign-exchange reserve stability with reinvestment\nflexibility by reviewing the policy on export proceeds from natural\nresources, with input from the government, industry and banks.<\/p><\/li>\n
Deliver on trade commitments through an implementation roadmap,\nengagement with affected industries and measurement of relevant\noutcomes.<\/p><\/li>\n<\/ul>\n
USABC President and CEO Ambassador Brian McFeeters said US companies\nhad long contributed to Indonesia\u2019s economic development. \u201cPolicy\ncertainty and consistency are important factors that enable companies to\nmaintain investment, expand operations and build stronger partnerships\nwith local businesses,\u201d he said at a USABC press conference on the eight\nrecommendations for Indonesia\u2019s 8% economic growth target in Jakarta on\nFriday, 30 October 2026.<\/p>\n
The recommendations are aligned with the development priorities set\nout in the 2025\u20132029 National Medium-Term Development Plan (RPJMN) and\nAsta Cita, including downstream processing, industrialisation,\nbureaucratic reform and investment mobilisation.<\/p>\n
Brian said the USABC and its member companies hoped to continue\nworking with the Indonesian government through the white paper\u2019s\nrecommendations to strengthen the investment climate, promote\nsustainable business expansion and extend the benefits of economic\ngrowth to communities, workers, local suppliers and Indonesian\nbusinesses.<\/p>\n
Bhredipta Socarana, the USABC\u2019s Indonesia country representative,\nsaid investment had the greatest potential to drive growth. Foreign\ninvestors already operating in Indonesia, he said, were the most\nreliable source of investment for three reasons: they pay taxes and\nnon-tax state revenue; provide goods and services that support the\ngovernment\u2019s agenda; and strengthen the ecosystem as customers of local\nsuppliers, employers, trainers and sources of innovation.<\/p>\n
\u201cWhen companies can operate in a business ecosystem that provides\nlegal and policy certainty, they can increase their investment and\nbusiness activity. Many business associations and the OECD say\nregulatory certainty and consistent implementation are key to attracting\nand retaining investment,\u201d he said.<\/p>\n
Bhredipta identified three conditions that shape companies\u2019\nreinvestment decisions. The first is clarity and consistency: companies\ncan comply when requirements, authorities and deadlines are clear and\nconsistently applied. USABC members associate unclear procedures,\noverlapping obligations and uncertain transition periods with delayed\ndecisions.<\/p>\n
The second is capability and proportionality. Regulation is most\neffective when it addresses identified risks and is suited to the\navailable human resources, systems and domestic capacity. \u201cOur members\nsay that rules introduced without readiness in testing, human resources\nor systems delay products reaching the market, and some investors\npostpone launches,\u201d he said.<\/p>\n
The third condition is partnership. Licensing, he explained, is only\nthe beginning of the investment cycle. Investors need government\ncounterparts who can resolve cross-agency problems and hear concerns\nearly. \u201cMembers say investors often find it difficult to identify the\nright partner,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/usabc-issues-eight-recommendations-to-support-indonesias-8-economic-growth-target-1793357437", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }