Economic Growth Target 2026 5.2 Percent Is Realistic

JAKARTA - Member of the Indonesian House of Representatives from the Nasdem faction, Charles Meikyansah, said that his party considered that the target for economic growth in 2026 of 5.2 percent to 5.8 percent was realistic.

"The NasDem Party faction considers that the economic growth target for 2026 is 5.2 percent to 5.8 percent realistic and optimistic," he said at the 19th DPR RI Plenary Meeting, May 27.

However, he conveyed that this achievement requires a directed strategy, consistent and targeted policy implementation, especially in stabilizing prices, maintaining purchasing power, and increasing job opportunities.

In addition, Charles also highlighted the contribution of household consumption to GDP, although it grew by 4.98 percent on an annual basis in 2024, this figure is still below the national GDP growth of 5.02 percent.

"This shows that people's purchasing power, especially the middle class, is still facing pressure due to increased informal work and reduced sectoral productivity," he said.

In addition, he conveyed that the NasDem Party faction was committed to fully supporting the Government's program in realizing food self-sufficiency as the foundation of national sovereignty.

"We appreciate the agricultural sector, which grew 10.52 percent in the first quarter and contributed 12.66 percent to GDP," he explained.

According to him, rice production for the January - June 2025 period is predicted to reach 18.76 million tons, an increase of 11.17 percent and this sector also absorbs 41.61 million workers, an increase of 890 thousand people in the same period.

Charles said that his party also encourages the agricultural sector not only to save economic growth, but also to absorb more labor with labor-intensive programs in the manufacture of agricultural infrastructure and facilities, as well as on-farm or sustainable off-farm involvement.

"We must also not be complacent, because food self-sufficiency will face many tests. Today, domestic rice prices are 20 percent more expensive than global rice prices, as well as rice production costs in Indonesia are 2 times higher than other countries," he said.

He added that domestic rice demand in 2029 is projected to reach 43.6 million tons, an increase of 12.5 million tons.

In addition, Charles estimates that agricultural production will also face reduced fertile land, minimal regeneration of farmers, increasingly difficult weather to predict until a global temperature increase of 1 - 1.5 degrees Celsius, making food independence more challenging.

"Therefore, creative efforts are needed and are right on target so that food self-sufficiency is successful. Among them are reducing production costs, preparing climate-smart agricultural-based mitigation and adaptation planning, precision agriculture, use of modern technology and superior seeds, increasing fertilizer subsidies and fuel subsidies, improving irrigation networks, to developing farmers' economic institutions, increasing social security programs as well as special insurance for farmers and fishermen as a form of protection against their job risks," he explained.