Mochtar Riady Offers Solutions for Indonesia Amid Global Turmoil
Lippo Group conglomerate Mochtar Riady has reminded Indonesia to learn from the economic and political dynamics occurring in the United States. According to him, the widening economic gap in the world’s largest economy has triggered political polarisation, which in turn impacts global economic stability.
“In the US, there are two political parties that are hostile to each other, and this brings a very negative impact on the world economy and world peace. This is a problem for the entire world that we face,” Mochtar Riady said at Wisma Danantara, Jakarta, on Monday (29/6/2026).
Mochtar recounted that when he finished his studies in the 1950s, he read an article reviewing Adam Smith’s The Wealth of Nations. At that time, he found the view that economic growth without equitable distribution has the potential to create a gap between the rich and the poor.
“That will bring a very negative impact, namely the inequality between rich and poor. And at this time, it turns out that is happening in the United States,” he mentioned.
Besides highlighting economic inequality, Mochtar also reminded of other threats stemming from rising geopolitical tensions. He assessed that the conflict between the United States and Iran has put pressure on the global economy through soaring inflation.
“We are also faced with the US war with Iran, which brings tremendous inflation to the whole world. And of course, the Indonesian nation cannot escape this difficult problem. These difficulties are faced by all nations, especially the Indonesian nation. This needs to be the attention of all parties,” he said.
Amid these conditions, he views that Indonesia needs to strengthen its domestic economic foundation through the development of the real sector that has a large multiplier effect on the national economy. One such sector is housing.
“In this regard, I feel that the economic development that occurred in America and China is very dependent on housing development,” he said.
Mochtar stated that housing development not only provides shelter for the community but is also capable of mobilising around 174 supporting industries. Therefore, this sector is considered worthy of being one of the main drivers of national economic growth.
“Because housing development involves 174 types of industries. Housing development is not a single industry, but involves or generates 174 other types of industries. Therefore, housing development should become a driving force for the Indonesian nation’s economy,” he explained.
Mochtar added that this policy is not solely aimed at meeting the people’s housing needs but can also be an instrument to drive economic growth while helping to reduce poverty.
“I hope this kind of thinking does not only occur within the Lippo Group but can be followed and spread to all conglomerates. In Indonesia, I think there are no more and no less than 100 large entrepreneurs. If every large entrepreneur can contribute to the government, then that will be an extraordinary benefit for our nation. This is my hope,” he concluded.