Jakarta. Amid persistent global uncertainty, the government is strengthening the foundations of the national economy while accelerating the implementation of President Prabowo Subianto’s priority policies.

Strategic sectors are being strengthened through efforts to increase the value added of natural resources, transform state-owned enterprises (SOEs), boost investment and develop new sectors that can become future sources of economic growth.

“The government continues to maintain the momentum of national economic growth by strengthening economic fundamentals and accelerating priority policies. These measures are aimed at increasing production capacity, strengthening investment and creating new sources of growth that can provide broad benefits to the public,” Coordinating Ministry for Economic Affairs spokesman Haryo Limanseto said in Jakarta on Wednesday.

Haryo said these policies had become increasingly important as the global economic outlook remained clouded by geopolitical, energy, trade and financing risks.

Indonesia’s economy grew 5.45% in the first half of 2026, while inflation stood at 2.88%. Investment realization reached Rp 1,010.6 trillion ($56.41 billion), up 7.2% from a year earlier.

The government is also accelerating downstream processing and strengthening domestic supply chains. As of 2026, groundbreaking ceremonies had been held for 26 downstream projects, including coal-to-dimethyl ether (DME) processing, copper and gold processing, industrial salt production, alumina-to-aluminum processing, and waste-to-energy projects.

The projects are expected to create tens of thousands of jobs while increasing the value added of Indonesia’s natural resources and strengthening the country's position in global supply chains.

The government is also strengthening natural resource management through the development of a bullion bank and efforts to optimize the management of export proceeds.

The bullion bank, operated by Pegadaian and Bank Syariah Indonesia (BSI), has managed 153 tons of gold worth Rp 360 trillion, or about $20 billion.

Meanwhile, PT Danantara Sumber Daya Indonesia (DSI) managed $14 billion in export proceeds from three strategic commodities during its first two months and 13 days of operations. The company also monitored more than 6,500 export transactions as part of efforts to strengthen governance and prevent practices such as underinvoicing and transfer pricing.

SOE Transformation
The government is also pursuing SOE reforms aimed at improving efficiency, effectiveness, and their contribution to the national economy.

Of 1,074 SOEs, including subsidiaries and sub-subsidiaries, 290 have been closed, while the government is targeting a maximum of 300 SOEs.

SOE profits rose 75.3% to Rp 326 trillion in 2025 from Rp 186 trillion in 2024, according to the ministry.

Looking ahead to 2027, the government is preparing a series of transformations aimed at increasing production capacity, productivity, and competitiveness while improving public welfare.

The 10 major initiatives include renovating 10,000 community health centers, constructing or revitalizing 441 regional public hospitals, renovating schools, establishing an Indonesian Commodity Exchange, optimizing SOE assets, developing 100 gigawatts of solar power capacity, establishing the Indonesia International Financial Center in Bali, developing the Danantara Development Management Fund, electrifying public transportation, and introducing a dual-citizenship policy.

The broader agenda is intended to strengthen Indonesia’s engines of economic growth through supply-side transformation, the development of higher-value-added industries, the revitalization of resilient economic sectors, and stronger investment and export competitiveness.

The government is targeting economic growth of up to 8%, driven by investment, industrial development, and higher productivity, while seeking to ensure that growth remains inclusive and creates jobs.

“The various transformation agendas being prepared for 2027 are part of the government’s efforts to build new sources of growth that are more productive and sustainable. By strengthening strategic sectors and increasing competitiveness, the government seeks to ensure that economic growth is higher and more inclusive,” Haryo said.

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