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Govt eyes 10% investment growth, chipmaking to achieve GDP target
The government will develop downstream industries, the digital economy and the semiconductor industry as the additional key drivers of growth.
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Coordinating Economic Minister Airlangga Hartarto briefs reporters on the development of 2024's third quarter gross domestic product growth on Nov. 5, 2024, in his Jakarta office. (JP/Deni Ghifari)
T
he government will pursue average growth of 10 percent in investment annually over the next five years, including to build up the chipmaking industry to the country, in a move deemed key to achieving President Prabowo Subianto’s ambitious 8 percent economic growth target.
To meet the gross domestic product growth target, Prabowo’s administration will also pursue around 9 percent growth in exports, while maintaining household consumption between 5 and 6 percent over the next five years.
Coordinating Economic Minister Airlangga Hartarto said during a national coordination meeting on Wednesday that the government would also develop downstream industries, the digital economy and the semiconductor industry as the additional key drivers of growth.
This marks a shift, as the last time Indonesia grew by 8 percent was in 1995, when the country relied on crude palm oil (CPO), textiles and oil and gas.
Read also: Malaysia says any US tariffs on BRICS could impact semiconductor supply
One potential downstreaming program, he said, involved the utilization of silica sand that can be turned to high quality float glass for the solar panel industry essential for the energy transition, while pointing out that the industry has already been established in Kendal, Central Java and Gresik, East Java.
The coordinating minister further emphasized that the country must push investment in the semiconductor industry, urging an end to the reliance on exporting commodities and raw materials.
