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Indonesia reports strong economic and investment performance

Jakarta (ANTARA) – Coordinating Minister for Economic Affairs Airlangga Hartarto said a plenary cabinet meeting chaired by President Prabowo Subianto at the State Palace on Monday reviewed the government's achievements in economic performance, investment, energy, employment, and digital transformation.”There are several achievements that need to be communicated to the public,” Hartarto said.In the macroeconomic sector, he noted that Indonesia's gross domestic product (GDP) grew by 5.61 percent in the first quarter of 2026, with growth expected to remain at around the same level based on preliminary State Budget (APBN) data.He added that inflation is projected to remain within the government's target range of 2.5 percent, plus or minus 1 percent.To sustain household consumption, the government introduced a range of stimulus measures, including transportation fare discounts, food assistance, religious holiday bonuses (THR) for state civil servants (ASN), military (TNI), and police (Polri) personnel, THR for online motorcycle taxi drivers, and tax incentives.”The total stimulus package amounted to Rp70 trillion in the first quarter and Rp26.34 trillion in the second quarter,” he said.Hartarto also reported that investment realization reached Rp511.8 trillion in the second quarter, representing approximately 25 percent of the annual target of Rp2,000 trillion.Cumulatively, investment realization in the first half of 2026 reached Rp1,001 trillion, equivalent to around 49 percent of the annual target.He noted that foreign direct investment (FDI) and domestic direct investment (DDI) contributed almost equally, totaling Rp257.7 trillion and Rp254.1 trillion, respectively.In the energy sector, the government has implemented the B50 biodiesel program to strengthen energy security and accelerate the national energy transition. Meanwhile, Indonesia's national electrification ratio reached approximately 99 percent during the first quarter.In the financing sector, disbursement of the Smallholder Business Credit (KUR) program reached Rp149.38 trillion. The government has also expanded financing for agricultural machinery and equipment, labor-intensive industries, and increased the housing loan ceiling to Rp50 trillion, with loan disbursement reaching nearly 56 percent.Meanwhile, investment realization in Indonesia's Special Economic Zones (SEZs) reached Rp353.3 trillion in the first quarter of 2026, generating 266,688 jobs.In the employment sector, the government launched internship programs for 150,000 participants in July 2026, alongside vocational training programs targeting 220,000 participants.Hartarto also highlighted Indonesia's status as one of the founding members of the World AI Cooperation Organization (WAICO), saying the membership provides the country with greater opportunities to contribute to the development of global artificial intelligence policies.