JAKARTA, 11 February 2026 – Indonesia is on track to achieve annual economic growth of up to 10% by 2029, exceeding President Prabowo Subianto’s official target of 8%, as sweeping reforms, social investment programmes, and infrastructure development strengthen Southeast Asia’s largest economy, according to climate and energy envoy Hashim Djojohadikusumo.
Speaking at the South China Morning Post’s China Conference: Southeast Asia 2026, Hashim expressed confidence that Indonesia’s economic transformation, driven by structural reforms and government-led development initiatives, would accelerate growth momentum over the next several years.
The projection reflects growing optimism around Indonesia’s long-term economic trajectory as the country positions itself as a major global growth engine, supported by strong domestic demand, infrastructure expansion, and strategic policy initiatives.
Structural Reforms and Leadership Driving Economic Momentum
Hashim credited President Prabowo’s leadership and determination in pushing through structural reforms and overcoming longstanding bureaucratic inefficiencies that have historically slowed development progress.
He noted that Prabowo’s administration had faced resistance from entrenched bureaucratic systems but had demonstrated strong resolve in implementing policies aimed at accelerating national development and improving public welfare.
“It’s really the iron will of my president that things have gotten done,” Hashim said, highlighting the challenges of reforming administrative systems and executing large-scale national programmes.
Indonesia’s reform agenda is focused on improving governance efficiency, strengthening economic institutions, and unlocking investment potential across key sectors.
Social Investment and Welfare Programmes Supporting Inclusive Growth
The government has launched several major social programmes designed to strengthen human capital and support inclusive economic growth.
Among the flagship initiatives is a nationwide free meals programme for children, aimed at improving nutrition and educational outcomes, alongside free medical check-ups for citizens to enhance public healthcare access.
These programmes are designed not only to improve social welfare but also to enhance long-term productivity by investing in human capital development.
Indonesia is also expanding social infrastructure, including housing projects and boarding schools for low-income families, which aim to improve living standards and support economic mobility.
Such initiatives reflect the government’s broader strategy of combining economic expansion with social development to ensure sustainable growth.
Infrastructure and Investment Key to Achieving High Growth Targets
Indonesia’s economic outlook is underpinned by large-scale infrastructure development and strategic investment in critical sectors such as energy, housing, and education.
Infrastructure expansion is expected to improve connectivity, enhance productivity, and attract foreign direct investment, positioning Indonesia as a competitive destination for global capital.
The government’s focus on accelerating project implementation and reducing bureaucratic barriers is expected to strengthen investor confidence and support private sector growth.
Indonesia’s growing role in global supply chains, particularly in energy transition sectors such as renewable energy and critical minerals, further enhances its long-term growth prospects.
Southeast Asia’s Largest Economy Positioned for Strategic Expansion
Indonesia’s strong economic outlook reflects its favourable demographics, expanding middle class, and abundant natural resources.
With a population exceeding 270 million, Indonesia offers one of the world’s largest domestic markets, providing a solid foundation for sustained consumption-driven growth.
The country’s strategic location, resource base, and expanding industrial capacity position it as a key player in global manufacturing, energy, and commodity markets.
Indonesia’s economic transformation also aligns with broader regional trends, as Southeast Asia emerges as a major global growth centre amid shifting supply chains and geopolitical realignments.
Strategic Outlook: Indonesia Emerging as Major Global Economic Power
Indonesia’s ambition to achieve double-digit economic growth signals its transition toward becoming one of the world’s leading emerging economies.
Structural reforms, infrastructure expansion, and social investment programmes are expected to strengthen long-term growth fundamentals while enhancing economic resilience.
For investors, Indonesia represents one of Asia’s most compelling long-term growth opportunities, supported by favourable demographics, rising domestic consumption, and strong policy momentum.
As the country accelerates its economic transformation, Indonesia is positioning itself not only as Southeast Asia’s largest economy, but as a future global economic powerhouse.
Source: SCMP
