Heaptalk, Jakarta — To support the achievement of an 8% economic growth target, the Indonesian Chamber of Commerce and Industry (Kadin) is preparing a White Paper outlining strategies and directions for economic development from 2024 to 2029.
This White Paper compiles input gathered through a survey involving 1,618 central and regional Kadin members and 48 focus group discussions (FGDs) with over 180 central Kadin officials, more than 125 extraordinary Kadin members, and 24 provincial Kadin representatives. The drafting of this White Paper was conducted in collaboration with eight partners: 5P Global Movement, Boston Consulting Group, DayaLima, Hukum Online, the Indonesian Business Council, the Institute for Development of Economics and Finance (Indef), McKinsey & Company, and Gadjah Mada University.
“The White Paper document details current challenges/issues and presents key initiatives (bold moves) to address them, making the White Paper relevant to Indonesia’s conditions over the next five years,” said Arsjad Rasjid, Chairman of Kadin Indonesia, at a press conference in South Jakarta (11/26).
According to Arsjad, the document serves as a guide for synergy between the business community and the government to build an inclusive and sustainable economy. Furthermore, the document translates President Prabowo’s Asta Cita vision into concrete actions, focusing more specifically on key growth sectors such as digitalization, industry, energy, and MSMEs.
Outlining 4 strategic pillars
Kadin Indonesia outlines four strategic pillars in the document: strengthening resilience, promoting welfare, enhancing inclusivity, and advancing sustainability. These pillars are translated into key initiatives serving as guidelines to achieve 8% economic growth. These initiatives have the potential to increase GDP by 7-8% annually.
The organization has also projected a cumulative GDP increase of US$450-500 billion from all key initiatives during 2024-2029. From these projections, seven top growth themes are expected to contribute over 80% of the estimated total GDP impact during this period. These seven priorities include health infrastructure, energy resilience, MSMEs, manufacturing, green and sustainable businesses, and food security.
Prayoga Wiradisturi, Director of Policy and Program at the Indonesian Business Council (IBC), stated that the White Paper’s theme of building the world’s largest green business development center aligns with IBC’s vision. One of the steps involves opening carbon trading to fund decarbonization. Establishing a Carbon Market Knowledge Center (CMKC) is a strategic step to realize this. He said, “This initiative aims to support inclusive growth and renewable energy sustainability for a greener future for Indonesia.”
Meanwhile, William Sabandar, Chairperson of the 5P Global Movement Indonesia, highlighted the importance of strengthening inclusivity to support sustainable economic growth through various approaches, including social, political and governance, economic, ecological and sustainability, cultural and social, as well as security and stability. He said, “Inclusivity drives the role of all community layers and is vital for economic growth.”
Adrian Dimitri, representing Boston Consulting Group, stated that Indonesia, as one of the largest economies, needs to prioritize strategic sectors to achieve inclusive and sustainable economic growth. “The priority mapping includes 20 subsectors, focusing on strengthening the domestic market, increasing exports, and government support through incentives and infrastructure,” he concluded.
