Finance Minister Sri Mulyani Indrawati Emphasizes the Need for at Least IDR 7,500 Trillion in New Investments to Drive Indonesia’s Economic Growth

Finance Minister Sri Mulyani Indrawati emphasized that Indonesia needs at least IDR 7,500 trillion in new investments to sustain national economic growth within the range of 5% to 6% by 2026. In addition, household consumption must also be boosted to grow by 5.5%, given its significant contribution to the country’s Gross Domestic Product (GDP).

The Strategic Role of Investment and Consumption

Sri Mulyani explained that investment currently contributes around 30% to GDP, making it one of the key pillars supporting economic growth. However, no less important is household consumption, which accounts for around 55% of GDP and requires serious attention. In the first quarter of 2025, household consumption growth was recorded at only 4.89%, falling short of the 5% target.

To boost consumer spending, the government will promote job creation, maintain inflation stability, and expand social protection programs. Several initiatives that will be implemented include the Free Nutritious Meals Program, the establishment of 80,000 village cooperatives, and the disbursement of People’s Business Loans (Kredit Usaha Rakyat, KUR) to 2.3 million borrowers.

Government’s Strategic Measures

The government has outlined a number of strategies to drive both investment and consumption, including:

• Increasing investment through the Danantara Investment Management Agency and creating a more favorable legal and regulatory climate for investors.

• Stimulating household consumption through the distribution of social assistance, subsidies, and domestic economic empowerment programs.

• Encouraging collaboration between the public and private sectors, while optimizing infrastructure spending and the development of the digital economy.

Focus on Quality Growth

Sri Mulyani stressed that the combination of investment and consumption, which currently contributes around 85% of GDP, is the main foundation for inclusive and sustainable economic growth in Indonesia.

She added that without strong investment support and healthy household consumption, achieving the national economic growth target will be difficult in the coming years.