Guru Besar Universitas Airlangga Rahma Gafmi explained a number of sectors that need to be encouraged so that Indonesia's economic growth can exceed 5 percent in 2026 amid global geopolitical uncertainty.
"To pursue the target of economic growth above 5 percent, Indonesia cannot rely on one sector alone. The government must move the entire 'engine' of growth through a combination of traditional sectors and high-value-added modern sectors," he said as quoted by ANTARA, Monday, April 13.
Rahma detailed that the first sector, the processing industry or manufacturing, remained the backbone of the national economy because it contributed around 19-20 percent to the gross domestic product (GDP).
Therefore, this sector needs to be encouraged to grow higher than the national economic growth.
The focus of strengthening manufacturing is through the downstream processing of natural resources such as nickel, copper, and bauxite into semi-finished products and finished products for export.
In addition, the development of the battery industry supply chain to vehicle assembly in the country is also considered crucial.
The second sector, namely agriculture and food security, which is beginning to show its role as a new growth engine. In 2025, this sector is recorded to grow above 5 percent, reversing the previous trend which was below 2 percent.
"Don't forget the simplification of fertilizer distribution and agricultural machinery. Because it is capital for productivity improvement. Implement programs such as food warehouses so that food prices remain stable to increase domestic demand for agricultural products," he said.
The third sector, household consumption which contributes around 54 percent to GDP.
He said people's purchasing power must be maintained through food price stability and job creation.
According to him, the acceleration of the realization of government spending since the beginning of the year is also an important factor to drive the economy.
Infrastructure projects such as irrigation, reservoir, pond construction, as well as road and bridge repairs are considered capable of increasing cash flow while expanding employment opportunities through the labor-intensive program.
"High growth targets require large capital flows (FDI) to us. There is a multiplier effect of creating new formal jobs," said Rahma.
Then, the fourth sector, Rahma highlighted the role of the green energy sector, especially the development of renewable energy.
The B50 biodiesel program, which is scheduled to start in July 2026, according to him, has the potential to save the budget up to Rp. 48 trillion if it is optimally carried out and targeted.
In addition, investment in the technology and digital economy sectors needs to continue to be encouraged because it has exponential growth potential and can become a new source of growth in the future.
After the Government Working Meeting at the Presidential Palace Complex, Jakarta, Wednesday, April 8, 2026, Coordinating Minister for Economic Affairs Airlangga Hartarto said that optimism about economic growth was supported by strong domestic fundamentals, especially household consumption which contributed around 54 percent to gross domestic product (GDP).
In terms of fiscal performance, the state budget performance until the first quarter of 2026 also showed a positive trend. Tax revenue until March was recorded to have increased by 14.3 percent to around Rp462.7 trillion, while the manufacturing sector is still in an expansion phase.
In addition, national food security is considered to be maintained. Rice production in 2025 reached 34.7 million tons, with Perum Bulog rice stocks currently around 4.6 million tons.
The government is also continuing to prepare strategic policies to maintain the momentum of economic growth and stability, one of which is through the implementation of the B50 Biodiesel Program which will take effect on July 1, 2026.
"The B50 policy is estimated to provide budget savings of up to Rp. 48 trillion," said Airlangga.
On the other hand, the government is committed to maintaining fiscal discipline, including maintaining the debt ratio at the level of 40 percent of GDP, below the maximum limit of the law of 60 percent.
In addition, the budget deficit is also targeted to remain maintained at around 3 percent by the end of the year.
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