Sri Mulyani Sets Rp 7,500 Trillion Investment Target to Reach 6% Economic Growth by 2026

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JAKARTA, Investortrust.id – Finance Minister Sri Mulyani Indrawati said Indonesia needs to boost annual investment by 5.9% to meet its 6% economic growth target in 2026, setting an ambitious target of Rp 7,500 trillion ($459 billion) in new investment.

Speaking at the 21st Plenary Session of the House of Representatives (DPR) on Tuesday, July 1, 2025, Sri Mulyani emphasized the critical role of investment, which contributes 30% to gross domestic product (GDP), in driving Indonesia’s medium-term growth ambitions.

To meet this target, the government is counting on the newly formed sovereign wealth fund, Badan Pengelola Investasi (BPI) Danantara, to mobilize both domestic and foreign capital into high-value, strategic sectors.

“Danantara is expected to become a game changer, accelerating investment inflows in the face of global uncertainty,” Sri Mulyani said. “It will focus on strategic, high-value-added sectors, while the government works harder to enable the private sector to become the main engine of economic growth.”

Household Consumption to Support Demand

In addition to boosting investment, the government is targeting 5.5% annual growth in household consumption—Indonesia’s largest GDP component at 55%. This will be supported by pro-consumption programs, including the Free Nutritious Meal (MBG) initiative and expanded People’s Business Credit (KUR) for 2.3 million borrowers.

“These programs are designed to raise household income and maintain purchasing power,” said Sri Mulyani, a former Managing Director of the World Bank. “Job creation and inflation control will be crucial for ensuring that consumption growth remains robust.”

The MBG initiative alone is expected to directly employ 1.7 million people and generate a broad supply chain across Indonesia. The government will also continue to implement strategic programs such as the Red and White Village Cooperative, targeting 80,000 units, and expand social protection schemes like the Family Hope Program (PKH), food assistance cards, and wage subsidies.

Infrastructure, Green Tech, and Digital as Growth Pillars

Sri Mulyani reiterated the importance of the private sector in financing infrastructure, green technology, and digitalization. These three pillars, she said, will lay the foundation for long-term, inclusive, and sustainable economic growth.

In response to parliamentary pressure—particularly from the Golkar Party—to raise the growth target to 5.8% in 2025, Sri Mulyani underlined that both investment and consumption must be scaled up significantly. Together, the two components are expected to contribute 85% of Indonesia’s economic output.