Jakarta, February 18, 2025 - Luhut Binsar Pandjaitan, the Chairman of the National Economic Council, said in his keynote address in the Indonesia Economic Summit 2025 held today that the private sector will play a key role to achieve the Indonesian Government’ target of 8% economic growth by 2029, especially through sharing the private sector’s skill and experience in management in order to make the Indonesian economy more efficient.

Making the economy more efficient is a key priority for the Indonesian Government. Luhut Binsar Pandjaitan said Indonesia’s Incremental Capital Output Ratio was at 6.6%, whic means every 1% of GDP growth requires 6.6% of growth in investment, higher than its ASEAN peers such as Vietnam and Malaysia.

Luhut Binsar Pandjaitan said the Indonesian Government also planned to establish a conducive ecosystem for family offices in order to attract more capital into the country. The planned establishment of Danantara, a sovereign wealth fund with IDR 900 trillion in assets under management (AUM) will also serve as a springboard to attract more private capital in Indonesia.

“President keep telling us to work together for Indonesia to achieve Golden Period 2045, said Luhut Binsar Pandjaitan.

President Prabowo Subianto had made a target 8% economic growth in 2029, which according to the Investment Coordinating Board will require 16% annual growth in investment in 2025-2029. The government seeks to attract 1,905 trillion rupiah in investments this year In 2029, Indonesia aims to attract 3,414 trillion rupiah in investments.

Attendees of the first plenary session of the IES 2025 titled “Economic Priorities and Strategies for Higher Growth Path”, hear key insights from global thinkers on steps an strategies that the Indonesian Government must undertake in order to achieve its target of 8% economic growth by 2029.

Ricardo Hausmann, Founder and Director of Harvard’s Growth Lab, said the way forwar for Indonesia to accelerate its economic growth is by diversification. “Countries don’t grow 8% by making more of the same, they grow by 8% by diversifying into more things and becoming more complex. There is a process of transformation to achieve that kind of growth,” said Ricardo Hausmann.

Achieving a sustained 8% economic growth will also require a very rapid growth of exports, a very rapid growth of urbanization into cities that become more efficient, and an improved capability to acquire know-how, according to Ricardo Hausman.

Xiang Bing, Founding Dean and Dean’s Distinguished Chair Professor of China Business and Globalization, Cheung Kong Graduate School of Business (CKGSB), said that t development trajectory of a nation should first start by becoming a better imitator before taking the next step of transforming into a nation of innovators.

About the Indonesia Economic Summit (IES): The Indonesia Economic Summit (IES) is an annual initiative of the Indonesia Business Council (IBC). Initiated as a high-level forum for collaboration and innovation, IES seeks to promote competitiveness, inclusive growth, and sustainable prosperity for Indonesia. This forum reflects IBC’s commitment to advancing Indonesia’s role in the global economic arena.

About the Indonesian Business Council (IBC): The Indonesian Business Council (IBC) is an association of CEOs and business/industry leaders of leading companies in Indonesia, established in February 2023. IBC seeks to promote and strengthen Indonesia’s competitiveness, encourage collaboration, and enhance the contribution of the Indonesian private sector to economic growth and prosperity, through advocacy. For media inquiries, please contact:
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