By M Khaidar Khamzah, Editor at The Nusantara Times
Published: March 15, 2025
The Nusantara Times, Jakarta — On March 12, 2025 Indonesia’s government has set an ambitious target of 6.3% economic growth for 2026, aiming to propel the nation towards increased prosperity and sustainability. The target is part of the country’s comprehensive Government Work Plan (RKP) outlined by the Ministry of National Development Planning (Bappenas), which focuses on key objectives for national development.
In addition to the growth target, the RKP outlines several important goals, including raising the country’s gross national income per capita to $5,870 and reducing greenhouse gas emission intensity by 37.14%. The Indonesian government also aims to improve the Environmental Quality Index to 76.67, focusing on balancing economic development with environmental protection.
Another major goal is to reduce the poverty rate to between 6.5% and 7.5% and maintain a Gini ratio—an indicator of income inequality—between 0.377 and 0.380. Additionally, Indonesia plans to boost its Human Capital Index to 0.57, with an emphasis on improving education and health standards for a more competitive workforce.
Minister of National Development Planning, Rachmat Pambudy, emphasized that achieving high economic growth is essential for raising both regional incomes and per capita income, ultimately enhancing the well-being of Indonesians.
The government is also preparing to implement several strategies to support the 2026 growth target. These include increasing productivity in export-oriented industries, launching labor-intensive programs, and raising agricultural productivity. As part of its green economy initiatives, Indonesia plans to focus on achieving food and energy self-sufficiency.
In line with the global digital transformation, the Indonesian government is prioritizing technological innovation, particularly through digital transformation initiatives. Efforts will also be directed at increasing productive investments, particularly through attracting export-oriented foreign direct investments and boosting non-state budget investments.
Bappenas is working closely with President Prabowo Subianto’s directive to ensure that the government’s budget is effectively allocated to programs that foster job creation, technological breakthroughs, and overall productivity, positioning Indonesia for a prosperous and sustainable future.
