ANN/ THE JAKARTA POST – Indonesia is setting its sights on a monumental investment target of IDR47,587.3 trillion (USD2.9 trillion) for the five-year period from 2025 to 2029.
Expert staff member at the National Development Planning Ministry/National Development Planning Agency (Bappenas) Raden Siliwanti unveiled the ambitious plan during a recent statement in Jakarta. She explained that this equates to an annual investment need of approximately IDR9,517.5 trillion, a scale that underscores the nation’s bold vision for economic transformation.
According to Siliwanti, the investment will rely heavily on contributions from three primary sources: the government, state-owned enterprises (SOEs), and the private sector. The private sector is anticipated to play a dominant role, contributing an estimated 86.7 per cent of the total investment, or approximately IDR41,277 trillion. Meanwhile, the government’s share of the investment is projected at 6.9 per cent, amounting to around IDR3,282.7 trillion, with SOEs accounting for 6.4 per cent, or IDR3,027.7 trillion.
“This highlights the crucial role of the private sector in supporting the national economy moving forward,” Siliwanti remarked, emphasising the significance of collaborative efforts to achieve Indonesia’s economic aspirations.
The investment framework, she elaborated, is designed not only to inject capital into key sectors but also to drive structural transformation and foster sustainable growth. The government plans to channel funds into initiatives aimed at enhancing agricultural productivity, particularly to strengthen food security. Concurrently, there will be a focus on advancing downstream processes and industrialisation in priority sectors, as well as developing the country’s defence industry.
These measures are expected to stimulate growth across various regions, ensuring that economic benefits are distributed more evenly nationwide.
Through these initiatives, Indonesia aims to accelerate its economic growth to reach a target of eight per cent by 2029. To support this ambitious goal, the nation is looking to increase foreign direct investment (FDI) to two per cent of gross domestic product (GDP) while raising the industrial sector’s contribution to 21.9 per cent of GDP by the same year. Export performance is another critical component, with a goal of achieving USD400 billion in exports and capturing 1.4 per cent of the global value chain.
Furthermore, Siliwanti highlighted several additional targets, including increasing state revenue to 18 per cent of GDP and government spending to 20 per cent of GDP by 2029. The government also seeks to boost food production, aiming to produce 20 million tonnes of unhusked rice, while enhancing the regional GDP contribution to 45.6 per cent. In the tourism sector, the goal is to elevate its GDP ratio to five per cent.
