Indonesia reports strong investment growth and targets 8% economic expansion

Indonesia is seeing a strengthening trend in investment, with President Prabowo Subianto reporting that investment realization in the first half of 2026 reached Rp1,010.6 trillion, approximately 49.5 percent of the annual target. This influx has created roughly 1.45 million jobs. The President anticipates a significant wave of large-scale capital inflows in the coming weeks, supported by stable economic fundamentals, including inflation at 2.92 percent and a fiscal deficit maintained below three percent.

Muhammad Qodari, Head of the Government Communication Agency (BAKOM), highlighted China as one of Indonesia’s largest sources of foreign investment. He emphasized that achieving the President’s 8 percent economic growth target requires increased domestic and foreign investment. Qodari noted that civil society organizations, such as the Forum Masyarakat Indonesia Emas (FORMAS), play a vital role in facilitating communication between Indonesian entrepreneurs and Chinese investors. FORMAS has demonstrated commitment by establishing two offices in China to help resolve business obstacles and strengthen economic cooperation.