What is the target economic growth rate for Indonesia by 2029?

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Indonesia Aims for Eight Per Cent Economic Growth by 2029

Indonesia's President Prabowo Subianto has set an ambitious target of achieving an eight per cent economic growth rate by the year 2029. This objective is intended to be driven significantly by an increase in public spending. The nation's economy previously recorded a growth of 5.6 per cent year-on-year in the first quarter of 2026, as reported by the national statistics agency.
Establishment of an International Financial Centre

To support this growth objective, Indonesia's parliament has approved a bill to establish an international financial centre, known as PFII. This initiative is projected to attract foreign investment and facilitate the acceleration of the country's economic expansion. The proposed financial centre aims to draw in foreign capital flows and sustainable portfolio investments, serving as a long-term financing source to broaden the national economy.
Potential Location and Incentives

The resort island of Bali has been previously suggested as a potential location for this new financial centre. The legislation passed unanimously by parliament encompasses the institutional framework for the PFII, as well as provisions for tax incentives. These measures are designed to make the centre attractive to foreign investors and financial institutions.
Legal and Judicial Framework

Beyond its financial and economic structure, the bill also outlines the establishment of an arbitration body and a special court. These entities will be authorised to examine and adjudicate cases within the financial centre, ensuring a dedicated legal framework to support its operations. The specific details of the bill, including the full text, have not yet been made publicly available.

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What is the target economic growth rate for Indonesia by 2029?

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