•   Home
  • News
  • • Chasing 8% Economic Growth: The Key to Success Lie...

Chasing 8% Economic Growth: The Key to Success Lies in Export-Oriented and Sustainable Investment

  Editorial INTI     20 hari yang lalu
7b5da34e6c5c1dc26b3f012e83c5459c1226d68213fd19536bb70b8f29383afe.jpg

Jakarta, INTI - In an ambitious drive to achieve an 8% economic growth rate, Indonesia's Minister of Investment, Rosan Roeslani, highlighted the critical role of export-oriented and sustainable investments. According to Rosan, while domestic consumption remains the primary driver of Indonesia's economic growth, further progress toward the 8% target requires a strategic increase in the share of investments, especially in sectors aligned with global sustainability trends.

Speaking at the Kompas100 CEO Forum in Indonesia's new capital city, Rosan outlined how Indonesia plans to leverage targeted investment in clean energy, electric vehicle manufacturing, and other sectors in demand globally. Rosan also emphasized that a shift toward export-oriented investments could enhance Indonesia’s positioning within the global economy, reducing dependency on domestic consumption alone.

“Domestic consumption still plays a significant role in our economy, contributing around 53-54% of the total economic growth, while investments account for roughly 24-25%,” Rosan explained. In previous years, domestic consumption contributed as much as 57-58%, with investments making up around 30% or more. However, Rosan pointed out that the present economic climate requires a recalibration of these figures, emphasizing a need to amplify the share of investment back to a level that can strongly contribute to long-term growth.

Why Export-Oriented, Sustainable Investments Matter for Economic Growth

As Rosan elaborated, relying primarily on domestic consumption has its limitations, particularly when aiming for an ambitious economic growth target. Export-oriented investments play a pivotal role in expanding Indonesia's economic reach and stability. By focusing on sectors that meet global sustainability standards, Indonesia can ensure its industries are both competitive and resilient in the global market.

“Sustainable, export-oriented investments not only bolster Indonesia’s presence in international markets but also align with the rising global demand for sustainable practices. We aim to prioritize sectors that support long-term growth, such as renewable energy and electric vehicle manufacturing,” Rosan noted. The strategy underscores the government's commitment to developing a green economy that meets international standards while enhancing Indonesia’s appeal to foreign investors.

Rosan highlighted the significance of clean energy initiatives as a backbone of Indonesia’s green investment strategy. Global investors are increasingly prioritizing green industries, and to stay competitive, Indonesia plans to accelerate the development of industrial zones that align with sustainable practices.

Building Clean Energy-Based Industrial Zones

To support this vision, Rosan unveiled the government’s plan to construct clean energy-based industrial zones across Indonesia. These zones are designed to meet the needs of environmentally conscious industries, such as electric vehicle (EV) manufacturing, by providing energy sourced from renewable resources. In doing so, Indonesia aims to become a destination for high-value investments while appealing to companies that have committed to decarbonization.

“Investors in sectors like electric vehicles require clean and renewable energy sources to align with their sustainability goals. We must ensure that our industrial zones are equipped to meet these standards,” he stated. Rosan cited his recent visit to Singapore, where Sembcorp has developed several green industrial zones across Vietnam. By the end of the year, these zones are projected to increase to 18, underscoring the global momentum behind green industrial initiatives.

The Indonesian government hopes that such initiatives will not only drive foreign direct investment but also generate long-term economic benefits by positioning Indonesia as a hub for green manufacturing in Southeast Asia. Indonesia’s alignment with global trends in clean energy and sustainable investment is expected to create a favorable climate for future investments.

Ad

Ad