Targeting 8 Per Cent Economic Growth: Investment Must Create Jobs

The government requires new sources of economic growth to pursue its 8 per cent growth target. The Institute for Development of Economics and Finance (Indef) assesses that investment, exports, government spending, MSME credit, and the energy transition need to be directed to provide a wider impact on the economy.

Indef Executive Director Esther Sri Astuti stated that the 8 per cent economic growth target requires greater effort and cannot rely solely on conventional growth sources. “If we look at the 8 per cent economic growth target, it means we need extra effort. We must seek new sources of economic growth, not just conventional economic growth,” she said during the ‘Sarasehan 100 Ekonom’ forum on Thursday (3/9/2026).

One of the growth sources that needs strengthening is investment. According to Esther, investment should not be judged merely by the volume of incoming capital, but also by its ability to create more and higher-quality employment opportunities. “Behind the investment figures, there is the hope of creating more and higher-quality jobs,” said Esther.

In addition to investment, strengthening exports is considered vital to adding to economic growth sources. The government also needs to direct spending towards programmes that possess a wider multiplier effect and long-term benefits.

From the financial sector, banking credit growth of approximately 13.58 per cent needs to be accompanied by more even distribution. MSME credit, which grew by only about 1.1 per cent, indicates that there is still room to expand financing to business actors.

Esther also highlighted the energy transition as an opportunity to create new growth sources. The development of clean energy can be linked to manufacturing industrial zones to support investment and industrialisation.

Indef proposed the development of renewable energy zones integrated with Special Economic Zones (KEK). Such integration could align industrial energy needs with clean energy supply, whilst simultaneously supporting the development of the manufacturing sector.

Investment policy, according to Esther, must also proceed alongside the strengthening of other economic sectors to ensure a broader impact on business activities and job creation.