Jakarta. Over the past ten years, Indonesia’s economy has grown steadily at around 5 percent, accompanied by inflation that remained within the target range. Meanwhile, Indonesia’s external sector has remained solid, as reflected in an improving current account deficit, supported by a trade surplus, a foreign debt ratio at a safe level, and high foreign exchange reserves.

“This is the challenge, as the President hopes our growth can be higher. If we look at the 2025–2029 National Medium-Term Development Plan (RPJMN), it outlines an economic growth target of 8 percent by 2029. To reach this, next year we need to grow by around 5.8 percent,” said Coordinating Minister for Economic Affairs Airlangga Hartarto during a briefing session for the Orientation Program for Prospective Ambassadors Extraordinary and Plenipotentiary of the Republic of Indonesia, held at the Foreign Affairs Ministry in Jakarta on Thursday.

Furthermore, Indonesia’s Competitiveness Ranking in 2024 reached 27th out of 67 countries (World Competitiveness Ranking 2024), climbing 7 spots from 2023, and has shown consistent improvement in recent years. Compared to other ASEAN countries, Indonesia ranks third after Singapore and Thailand. This significant improvement is attributed to factors such as economic performance, government efficiency, and business efficiency.

In the first half of 2025, three international credit rating agencies gave Indonesia a stable outlook: Moody’s (Baa2), Fitch (BBB), and S&P (BBB). These ratings were based on Indonesia’s sustained economic resilience, supported by strong domestic demand and the government’s commitment to maintaining the credibility of its monetary and fiscal policies.

“The government needs to accelerate its spending. This growth can be driven by investment or fixed capital formation from both the public and private sectors, including through various programs such as the development of Special Economic Zones (SEZs). We are also looking at international cooperation, where Indonesia is actively participating in various partnerships and economic groups,” added Minister Airlangga.

Several strategic steps that have been and will continue to be taken by the government include diversifying export markets and trade partners to reduce reliance on traditional markets. In addition, strengthening industrial downstreaming and the semiconductor sector by processing natural resources -- particularly nickel and bauxite -- will help increase added value, create jobs, and boost Indonesia’s position in the global supply chain.

The government will also continue to promote digital transformation and the creative economy, while enhancing food and energy security by increasing domestic production through agricultural modernization and the development of renewable energy.

Minister Airlangga also expressed his hopes to the Ambassadors regarding Indonesia Incorporated and Nation Branding, emphasizing that the country can only succeed in regional and global competition if all elements of the government are united in supporting established policies. Ambassadors must be able to promote and drive trade, tourism, and investment, as support from Indonesian representative offices abroad is crucial in advancing Indonesia’s image on the global stage, he said.

Also present at the event were Deputy for Economic Cooperation and Investment Coordination at the Coordinating Ministry for Economic Affairs, Edi Prio Pambudi, and Director General for American and European Affairs at the Ministry of Foreign Affairs, Umar Hadi.