Indonesian Political, Business & Finance News

Airlangga: Productivity boost to drive six percent growth

| Source: ANTARA_ID Translated from Indonesian | Economy
Airlangga: Productivity boost to drive six percent growth
Image: ANTARA_ID

Coordinating Minister for Economic Affairs Airlangga Hartarto has said that improving productivity is one of the key indicators for reaching the six percent economic growth target in 2027.

“Productivity gains are important, particularly in human resource development,” Airlangga said at the SUAR Forum 2026 in Tangerang, Banten, on Friday.

He added that the government is driving these efforts through a number of strategic programmes, such as the National Internship Programme for fresh university graduates and the National Vocational Training scheme, which is expected to reach at least 200,000 participants from various backgrounds.

“Therefore, the government is pushing this year to continue the internship programme for 150,000 new university graduates, and secondly, vocational training is targeted to reach 250,000 people,” he said.

In addition, Airlangga said the government, through Danantara Indonesia, is also partnering with UK-based chip design company Arm Limited to accelerate the mastery of semiconductor technology in Indonesia.

“We are working with Arm from the UK, and this partnership with Arm is expected to help produce around 15,000 new engineers in semiconductors or chip design. So this is one of the investments Danantara is making in this sector,” he said.

Furthermore, Airlangga said productivity improvement efforts are being carried out in tandem with investment growth, improved export performance, and logistics efficiency.

“Investment is expected to grow faster than GDP and is expected to focus on high value-added projects, and these projects should also utilise domestic value chains, especially those related to capital goods,” Airlangga explained.

“Then, we continue to push exports with added value supported by logistics efficiency,” he added.

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