Jakarta. Presidential Envoy for Energy and Climate Hashim Djojohadikusumo said Indonesia can achieve economic growth of 8% or higher by expanding housing, digital infrastructure, energy and green technology while maintaining environmental safeguards.

Hashim said housing and construction could become a major growth engine because the sector is linked to about 185 industries, ranging from furniture and electricity to cables, cement and timber.

“Property housing and construction are linked to 185 industries or economic sectors, including furniture, electricity, cables, cement, wood and others. I think this is one of the drivers of growth,” Hashim said Wednesday.

The construction and housing sector currently contributes about 14% of Indonesia’s gross domestic product, leaving room for further expansion, he said.

Hashim compared Indonesia’s share with China, where housing, property and construction accounted for around 25% of GDP for roughly 35 years through 2018.

Beyond construction, Hashim identified affordable internet access, artificial intelligence and data centers as emerging engines of growth. Citing McKinsey and the World Bank, he said a 10% increase in the population with access to affordable internet could lift annual economic growth by 0.7% to 1.3%.

He said only about 15% of Indonesia’s population currently has consistent and affordable internet connectivity.

The rapid expansion of AI and data centers could also create significant opportunities for Indonesia, particularly given its young population and diverse energy resources.

“Indonesia has a competitive advantage in the era of AI and data centers,” Hashim said.

Meeting the rising energy demand from the digital economy, however, will require greater investment in renewable energy. Hashim said the government has announced a 100-gigawatt solar power program equipped with energy storage batteries.

Hashim said these growth engines must be developed under a “growth with balance” approach, arguing that Indonesia cannot pursue faster economic expansion at the expense of its environment, including forests.

“I am very optimistic that Indonesia will shine. Our economy will grow through a balanced strategy,” he said.Hashim said the combination of housing, the digital economy, energy, food and green technology could provide the foundation for Indonesia to pursue 8% economic growth while protecting the environment.

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