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Leading Indonesia's charge toward 8% growth in a bold new era
Leaders who can balance decisive action with emotional conviction will be the ones who drive Indonesia forward.
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Workers load fresh fruits bunches (FFBs) onto a truck on May 23, 2024, at Sungai Mesjid Port in Dumai, Riau. Indonesia, the world’s largest palm oil producer, has beenlooking to use biomass as a way to reduce costly fuel imports. (Antara/Aswaddy Hamid)
W
e are living in an extraordinary time for business, especially in Indonesia, where newly inaugurated President Prabowo Subianto has set an audacious target of 8 percent annual GDP growth. This goal presents both dazzling opportunities and complex challenges.
The days when success hinged on labor and capital during the Industrial Revolution are behind us. The Knowledge Age, where information and intellectual prowess ruled, is also fading. We are now entering what Julian Birkinshaw of London Business School calls the "Post-Knowledge Era", an age driven by decisive action, emotional conviction and the courage to lead through uncertainty.
This shift has huge implications for business leadership. It is no longer about simply having the right information or being the smartest person in the room. To navigate this landscape, leaders must be agile decision-makers, prepared to act, even when outcomes are uncertain. For Indonesia, where the stakes are high, it’s a fascinating and daunting challenge for businesses aiming to thrive.
Let’s rewind. Back in the Industrial Age, growth came from mastering production, labor and capital were key. Businesses grew by scaling up, producing more and refining supply chains. Success meant hard, physical work. Then came the Knowledge Age, ushered in by computing and the internet. Suddenly, information became the most valuable resource.
In Indonesia, with its young, tech-savvy population and booming digital economy, intellectual capital took center stage. The winners weren’t manufacturers anymore but innovators, those who could turn data into insights and decisions. Indonesia's digital economy was valued at US$77 billion in 2022, with sectors like e-commerce, financial technology and logistics leading the way.
The Post-Knowledge Era, as Birkinshaw suggests, goes beyond just knowing things. It’s about doing things, making fast decisions, even when you don’t have all the answers. This means Indonesian businesses must cut through the noise of data overload and act decisively, all while inspiring their teams with emotional conviction.
As Indonesia pushes for an 8 percent GDP growth, leadership must adapt. It’s about being decisive, embracing calculated risks and having the moral courage to act even when facing “wicked problems”, those tricky, complex challenges with no clear solutions. Leaders who can balance decisive action with emotional conviction will be the ones who drive Indonesia forward.
