Boosting Indonesia Growth, Kadin Targets Investment Share Reaching 40% of GDP

JAKARTA, Investortrust.id — Kadin Indonesia, the country largest business lobby group, urges stronger investment momentum to accelerate national growth as government programs gain traction across sectors, a move expected to lift the investment share of GDP toward 40 percent and expand jobs nationwide. The business chamber sets a new push for easier investment, downstream expansion, productivity gains, and innovation to reinforce inclusive economic growth.

Kadin Indonesia, formally the Indonesian Chamber of Commerce and Industry established under a 1987 law, concluded its two day National Leadership Meeting II with 1,653 participants from central leadership, associations, and regional chapters, on Tuesday, Dec 2, 2025 in Jakarta, producing a set of policy recommendations for the President. The chamber said the paper offered strategic input to help push inclusive growth toward 8 percent, end extreme poverty, and support the vision for a Golden Generation by 2045.

At the closing session, Chairman Anindya Novyan Bakrie said the meeting adopted the theme of collective effort to expand employment opportunities through innovation, productivity, investment, industry, and trade. He stated that Indonesia entered 2026 with rising confidence as early stage government programs had begun to show impact across the economy.

"We are optimistic that economic conditions in 2026 and the years ahead will improve. We enter 2026 with a higher confidence level because government programs rolled out since early this year have begun to show results. Next year, the economic growth rate can exceed 5.5 percent. With ongoing improvements, these programs will deliver significant impact on growth and job creation," Anindya said.

He added that the Seventeen Programs and Eight Priority Agendas had raised optimism for stronger economic prospects. Six of the eight agendas were set as quick wins, including the MBG program, worker deployment initiatives, construction and renovation of three million houses, free health checkups, paid apprenticeships, and the Red White Cooperative program.

Kadin placed major attention on job creation, emphasizing close cooperation with the government and financial institutions under the Indonesia Incorporated approach. According to Anindya, government programs had already delivered a significant impact on employment expansion.

He said Indonesia needed easier investment flows across agriculture, industry, energy, trade, services, the creative economy, tourism, and artificial intelligence. Investment served as the primary game changer at a time when household purchasing power faced pressure.

He noted that the Ministry of Finance had increased liquidity by Rp 276 trillion and monetary policy had become more accommodative. "Liquidity is no longer the problem. The challenge is now on the demand side. This is why easier investment, both domestic and foreign, is essential," he said.

Kadin planned to raise its contribution to GDP from the current 29 percent to above 40 percent in the coming years. The chamber supported the government in removing investment bottlenecks, granting incentives to businesses, revising regulations that slowed investment, and reducing high cost economy factors that elevated the ICOR.

Anindya said investment smoothening required a clearing house for industry and land disputes, inclusive tax holidays for medium sized domestic investors, legal certainty on environmental impact assessments, and a clearer government role in strategic industries. He also called for synchronization of the OSS system, a supply chain roadmap, and development of special economic zones and industrial estates outside Java through public private partnerships. He added that a closed loop transmigration scheme linked to industry and Kadin offtakers would support regional growth.

Kadin also backed the government push on downstream processing and industrialization. Labor intensive industries needed additional stimulus in the near term, while the country continued strengthening basic industries, capital goods production, digitalization, and AI adoption.

On productivity, Kadin emphasized vocational education, apprenticeships, and integrity based workplace culture. Anindya said productivity depended not only on skills but also on work ethos, shaped through education and consistent training.

The chamber proposed stronger innovation through research and development incentives, new definitions of waste to support circular economy initiatives, expanded collaboration between BRIN and industry, and closer alignment of the LPDP scholarship program with national industrial needs. Cooperation between universities and private sector actors required strengthening to support applied research and technology diffusion.

On trade, Kadin pressed for stronger trade remedies, better import governance, and simplified export and import permits. The chamber also called for broader SME support to capitalize on free trade agreements, a reformulated sea toll system using a hub and spoke model, offensive and defensive trade diplomacy involving Kadin, and a large scale 'Proudly Made in Indonesia' campaign at home and abroad.

Kadin said SMEs, which employed 98 percent of the workforce and contributed 60 percent of GDP, must be integrated into flagship government programs such as MBG, the three million homes initiative, food security, and energy projects. SMEs needed incentives and mentoring to raise product and service quality.

The chamber also supported sustainable development through involvement in renewable energy projects including hydro, geothermal, solar, and water based power systems, while enhancing national energy security. Anindya said Kadin contributed through the reduce, recycle, reuse, replant, and replace framework.

He added that Kadin helped rural schoolchildren who crossed rivers daily by supporting bridge construction under CSR programs. With an estimated 300,000 bridges needed, the cost per bridge ranged from Rp 200 million to Rp 800 million.

"The policy paper derived from member input is being finalized and will be delivered to the President," Anindya said.