Indonesian Political, Business & Finance News

Airlangga assesses various business sectors are still expanding

| Source: ANTARA_ID Translated from Indonesian | Economy
Airlangga assesses various business sectors are still expanding
Image: ANTARA_ID

Jakarta (ANTARA) - The Coordinating Minister for Economic Affairs, Airlangga Hartarto, assesses that various business sectors are still undergoing expansion, supported by investment realisations in the first quarter of 2026 that surpassed government targets.

Airlangga stated that business actors will naturally increase production capacity when they see opportunities to boost sales.

“I believe that if there is an opportunity to increase production, entrepreneurs will naturally increase it, especially since entrepreneurs want to leverage their position; therefore, higher sales are always what entrepreneurs hope for,” he said in Jakarta on Monday.

Airlangga cited several economic and industrial zones that continue to show an expansion trend, including the planned expansion of the Gresik Special Economic Zone (KEK) in East Java, to accommodate high investment interest and support the development of an integrated industrial and port ecosystem.

As of the first quarter of 2026, the area recorded a cumulative investment of Rp113.4 trillion, with investment after the designation of the KEK reaching Rp108.2 trillion, representing an increase of more than 1,900 per cent compared to before it attained KEK status.

In terms of employment, the Gresik KEK has absorbed 45,860 workers, with more than 44,000 of them created after the area was designated as a KEK.

Furthermore, Airlangga mentioned that the occupancy levels of the Kendal and Batang KEKs are also approaching maximum capacity.

“I also see interest from the data centre sector, for example; there is additional demand of 1.32 GW or 1.2 GW that is ready to enter Indonesia,” he said.

Nevertheless, Airlangga believes that investment indicators and the high occupancy rates of several industrial zones demonstrate that business expansion activities are ongoing.

Data from the Coordinating Ministry for Economic Affairs shows that investment realisation in the first quarter of 2026 reached Rp498.79 trillion, exceeding the set target, with a year-on-year (yoy) growth of 7.22 per cent. Labour absorption also increased to 706,569 people, an increase of 18.93 per cent (yoy).

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