October 10, 2025 | 05:04 pm
TEMPO.CO, Jakarta - Indonesian Minister of Finance, Purbaya Yudhi Sadewa, has emphasized that Indonesia's economic growth must surpass 5 percent to achieve an 8 percent level in the medium term. He also highlighted the success of several Asian countries in achieving growth by undergoing economic transformation.
According to Purbaya, a number of countries that have been able to accelerate growth have transformed their economies from agriculture-based to manufacturing-based, and then to service-based. "Countries such as China, South Korea, and Germany have consistently maintained their manufacturing basis," said Purbaya during the Prasasti Luncheon Talk in Jakarta, quoted from the press release of the Prasasti Center for Policy Studies, on Friday, October 10, 2025.
The former Chair of the Board of Commissioners of the Indonesia Deposit Insurance Corporation (LPS) mentioned that the government must move toward manufacturing sector—especially high-tech manufacturing—while maintaining the agricultural sector.
Purbaya believes that the economic growth rate of 6-6.5 percent can be achieved in the coming year if the government and the private sector synergize. The government plays a role in preparing a conducive business climate, improving regulations, and accelerating budget realization and expenditure of ministries/agencies.
"We are starting by forming an economic acceleration team to resolve investment bottlenecks," Purbaya said.
The government has also launched an economic stimulus package 8+4+5, consisting of eight acceleration programs for development in 2025, four continuation programs in 2026, and five flagship programs for workforce absorption.
Chair of the Indonesian Employers' Association (Apindo) Shinta Kamdani previously argued that the incentive must not be used solely for consumption.
According to Shinta, the government's allocated stimulus should also trigger private investments. She also revealed several challenges faced by business actors. "Today's business world faces extensive and widespread high-cost issues. Our business costs are much higher than neighboring countries, such as logistics costs, energy costs, and compliance costs from bureaucracy," Shinta told Tempo on Wednesday, September 17, 2025.
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