Indonesia targets productive sectors and investment to boost job creation

Experts and lawmakers in Indonesia are emphasizing the importance of strengthening productive sectors and investment to drive job creation and improve economic welfare.

Esther Sri Astuti, Executive Director of the Institute for Development of Economics and Finance (Indef), noted that while economic growth is high, the current composition is heavily driven by non-tradable sectors like information, communications, and utilities. She argued that tradable sectors, which are primary drivers for GDP and employment, have been growing below the national average. To address this, she suggested that industrialization must be a priority, supported by improved investment climates and workforce quality to create a stronger "spillover effect" for public welfare.

In parallel, Muhammad Misbakhun, Chairman of Commission XI of the DPR, highlighted the role of Danantara and private investment in creating new jobs to sustain public purchasing power. He noted that while investments are being pushed, many projects are currently in the early stages or groundbreaking phases and will require time before they significantly impact employment and regional economic contributions.