Airlangga Optimistic Business Sector Still Keen to Expand

Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that a number of business sectors are still expanding. “I believe that if entrepreneurs have the opportunity to increase production, they will naturally do so,” Airlangga said in South Jakarta on Monday, 29 June 2026.

Airlangga noted that the desire to expand is primarily held by companies looking to utilise their capital, with entrepreneurs hoping for higher sales performance. He cited the occupancy of Special Economic Zones (KEK) in Central Java, East Java, and the Riau Islands as being nearly full. “In Kendal and Batang, the locations are almost 100 percent occupied,” he said.

The Golkar Party politician also revealed plans for data centre investments with a capacity of up to 1.2 gigawatts (GW) in Indonesia.

A 2025 survey by the Indonesian Chamber of Commerce and Industry (Kadin) and the National Banks Association (Perbanas) revealed that only 39 percent of entrepreneurs stated they were ready to invest or expand their businesses over the next six months. The survey results were presented by Kadin’s Deputy Chair for Macro-Micro Economic Policy Analysis, Aviliani, during the launch of the 46th Financial Stability Review book organised by Bank Indonesia.

In her presentation, Aviliani noted that 71 percent of entrepreneurs believe pro-growth policies can strengthen the real sector. However, this confidence does not immediately translate into readiness to invest. “This means the government must better communicate that the private sector’s role is still needed,” she said last weekend.

Kadin assesses that the private sector needs to be more involved in government programmes. Aviliani stated that the private sector’s contribution to investment remains dominant at 80 percent, while the role of State-Owned Enterprises (BUMN) and the Danantara Investment Authority stands at 15 percent. Therefore, she suggested the government should empower the private sector in various programmes, such as agriculture and the free nutritious meals initiative. “Because the private sector is ready in many respects. The government also does not need to spend a lot of money from the State Budget (APBN),” she said.