Bappenas seeks central-regional synergy to drive economic growth

Indonesia's National Development Planning Agency (Bappenas) is emphasizing the need for stronger synergy between central and regional governments to accelerate economic growth. The agency aims to reach an 8 percent growth target by 2029, following a growth rate of 5.61 percent in the first quarter of 2026 and 5.45 percent in the first semester of 2026. The government is targeting approximately 6 percent growth for 2026 as a foundation for future acceleration.

To achieve these goals, Bappenas officials stated that planning must move beyond mere targets to include concrete work and action plans. Regional governments are encouraged to optimize leading sectors, expand economic bases, and increase productive spending through regional budgets (APBD).

Bappenas is also adopting a tailored approach to regional planning rather than a ‘one size fits all’ policy. Planning is designed based on specific regional characteristics; for example, while Java may focus on industry, regions like Papua may prioritize education and health. This planning process involves coordinating national long-term development plans down to regional levels, in collaboration with the Ministry of Home Affairs.