Indonesian Political, Business & Finance News

Ahead of Financial Note, DPR Demands Job Creation

| | Source: REPUBLIKA Translated from Indonesian | Economy
Ahead of Financial Note, DPR Demands Job Creation
Image: REPUBLIKA

A member of the House of Representatives’ (DPR) Commission XI, Kamrussamad, stated that economic growth must be of high quality and that every percentage point increase should have a clear impact on labour absorption. “Every 1% economic growth must be able to create jobs. How many jobs were created? In which sectors?” he said when met at the DPR/MPR Complex in Senayan, Jakarta, on Friday (14/8/2026). He noted that according to calculations used by economists, 1% economic growth can create more than 900,000 new jobs. Therefore, the government needs to explain the sectors that are sources of job creation, including the impact of the downstreaming programme.

Kamrussamad assessed that the 5.29% economic growth in the second quarter of 2026 shows that the impact of national priority programmes is beginning to be felt. Cumulatively, economic growth for the first half of 2026 reached 5.4%. “This means that in the second quarter, the direction of our national priority programme policies is starting to have an impact on economic growth,” he said. Nevertheless, he reminded the government that it still faces a major challenge in achieving the 8% economic growth target by 2029. The government needs to calculate the contribution of each source of growth, from the state budget (APBN), foreign direct investment (FDI), domestic direct investment (PMDN), to Danantara. “To reach 8%, we are calculating four sources. First, the push from the APBN; second, foreign investment or FDI; then domestic investment; and then the consolidation carried out by Danantara,” he said.

Kamrussamad said the DPR is still waiting for the calculation of Danantara’s contribution to economic growth. He requested that Danantara Investment Management (DIM) immediately submit its contribution figures. “This is the calculation that we in the DPR have not yet received from the government, especially from Danantara. We ask DIM to immediately submit its contribution to economic growth,” he said. In addition, Kamrussamad urged the government to strengthen cross-sector coordination so that programme implementation is on target, on time, and provides the right benefits. Government communications also need to be improved to reduce uncertainty in the market and among the public. According to him, the direction of government policy must be able to maintain a balance between economic growth, job creation, and strengthening the business world. “The direction of government policy is felt to be truly pro-growth, pro-job, and also pro-business to encourage the business world. So these three commitments must run in a balanced and harmonious manner,” he said.

Meanwhile, Secretary General of the Democratic Party and member of the DPR’s Commission VI, Herman Khaeron, highlighted the streamlining of state-owned enterprises (BUMN), which is targeted to reduce the number of companies to around 200. Herman said the streamlining is carried out by merging several BUMNs that have similar clusters or lines of business. This restructuring is also part of efforts to strengthen the revenue sources managed by Danantara. “Currently, BUMNs are being streamlined, mergers are being carried out for several BUMNs, both those in the same cluster and those with similar business fields,” he said. He added that the streamlining process runs concurrently with efforts to increase BUMN revenues. Performance improvements are carried out through efficiency, increased productivity, and asset revitalisation. “Looking at the revenue side, whether through efficiency, increased productivity, or the ongoing revitalisation of BUMN assets, the growth is quite good,” he said. Herman assessed that the improved performance of BUMNs is one of the assets to sustain economic growth amidst global challenges. He said that economic growth above 5% shows that the Indonesian economy is still on the right track. “With this 5.2% growth, it also shows that the Indonesian economy is still on the right track,” he said. According to Herman, the government needs to maintain the momentum of economic growth so that it continues to increase and has an impact on public welfare. He also believes that the management of natural resources must be directed towards improving income equality. “All natural resources are for the prosperity of the people. This is something we must support together,” he said. Herman is optimistic that the Indonesian economy will continue to improve in the future despite global pressures. According to him, increasing the efficiency and productivity of BUMNs can be part of efforts to strengthen the national economy.

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