Economists Confident Agriculture and Manufacturing Investment Will Boost Employment - BCA Securities
Bhima Yudhistira, Executive Director of the Centre of Economic and Law Studies (Celios), believes that investment in the agriculture, fisheries, and manufacturing sectors must be prioritised to increase employment absorption amidst the pursuit of national investment targets.
Speaking in Jakarta on Monday, Bhima urged the government not to merely chase nominal investment figures but to ensure that incoming capital is capable of creating optimal employment opportunities. He suggested that, ideally, every Rp1 trillion of investment should be able to directly absorb approximately 4,500 workers. Consequently, labour-intensive investment should be the government’s primary focus.
“Ideally, it could reach a ratio of 1:4,500, where every Rp1 trillion of investment directly absorbs 4,500 workers. Labour-intensive investment in the agriculture, fisheries, and processing industries must be a priority,” he stated.
Furthermore, Bhima emphasised the importance of recovering and strengthening investor confidence through improved economic governance and legal certainty. He noted that trust is a vital factor in maintaining investment interest, especially as global business actors closely monitor regulatory stability.
Previously, the Minister of Investment and Downstreaming, Rosan Roeslani, stated that investment is a key factor in achieving Indonesia’s 8 per cent economic growth target amidst global uncertainty and geopolitical tensions. “Investment plays a very significant role, contributing approximately 1.79 per cent to the 5.61 per cent economic growth,” Rosan said during the ‘Kadin Monthly Economic Diplomatic Breakfast’ in Jakarta on Friday.
Rosan noted that the Indonesian economy grew by 5.61 per cent in the first quarter of 2026, with investment contributing approximately 31-32 per cent to total national economic growth. He added that the contribution of investment to economic growth has increased compared to the previous period, which stood in the 27-28 per cent range.
He explained that domestic consumption remains the largest pillar of Indonesia’s economic growth, while investment serves as the second-largest contributor. According to Rosan, the national investment target for 2026 is set at Rp2,041.3 trillion, in accordance with the 2026 Government Work Plan (RKP), as part of the effort to drive economic growth towards eight per cent during the 2025-2029 National Medium-Term Development Plan (RPJMN) period.
In the first quarter of 2026, investment realisation in Indonesia reached Rp498.8 trillion, representing a 7.2 per cent growth compared to the same period last year, while simultaneously absorbing 706,569 workers.