Antara News·Indonesia·Wednesday, October 14, 2026 at 08:58 AM UTC

Dy minister sets four conditions for 6 pct economic growth in 2027

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Rizka Khaerunnisa, Resinta Sulistiyandari

Jakarta (ANTARA) - Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo outlined four conditions in order to achieve the economic growth target of 6 percent in 2027 and towards 8 percent in the medium term.

These four conditions are investment growing faster than gross domestic product (GDP); increasing productivity; increasing value-added exports supported by logistics efficiency; and developing sharia economics as part of efforts to boost the national economy competitiveness.

Speaking at the opening of the 2026 Indonesia Sharia Economic Festival (ISEF) on Wednesday, Wibowo stressed that investment growth must outpace GDP growth and focus on high-value-added projects, requiring close cooperation between the government and the private sector.

"I have conveyed on several occasions on behalf of the Coordinating Minister (Coordinating Minister for Economic Affairs), that the government and the private sector must work together," he remarked.

He added that the government will also intensify debottlenecking efforts through deregulation and de-bureaucratization to assist the private sector in move quickly.

On the other hand, sharia economic development is considered to be one of the mainstays for encouraging economic growth while increasing national competitiveness.

According to him, the potential for this sector is quite promising, in line with the projected global Muslim consumer spending of almost US$3.6 trillion in 2029 and global sharia financial assets of US$9.72 trillion.

To develop the sharia economy, the government is pursuing five strategic directions, namely strengthening the halal industry and halal MSMEs, increasing exports and international cooperation, strengthening the halal ecosystem, developing sharia finance, and strengthening sharia social funds.

Wibowo also highlighted the need to support ultra-micro businesses in developing their role in the halal industry. He added that international cooperation was also important for Indonesia to compete globally.

In this case, the government is pursuing market access expansion for halal products through the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) and the Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE-CEPA) which are already in effect, as well as negotiations with the Gulf Cooperation Council (GCC), Turkiye, Pakistan, Bangladesh and Tunisia.

Meanwhile, Wibowo noted that strengthening the halal ecosystem requires efforts across all industry sectors, alongside the development of sharia finance with support from stakeholders, including Bank Indonesia (BI) and the Financial Services Authority (OJK).

The halal industry had become one of the drivers of the national economy, with halal value chain contributed almost 25 percent to GDP or around Rp1,524 trillion (US$82,6 billion) in the fourth quarter of 2025 and halal products exports grew 23 percent in 2025 to US$63.4 billion.

The national halal ecosystem also continues to develop where Indonesia had issued 4.4 million halal certificates covering 14.6 million products.

In addition, 39 partner countries have recognized halal certification through a mutual recognition agreement (MRA) mechanism, while Indonesia has four halal industrial zones and a special economic zone.

Indonesia is also ranked second in the world in Muslim-friendly tourism based on the 2026 Global Muslim Travel Index (GMTI) and ranked first in the world in the Muslim fashion sector.

However, the government admits that increasing sharia financial literacy and inclusion is still homework.

The 2026 National Survey of Financial Literacy and Inclusion (SNLIK) showed the sharia financial literacy level was recorded at 43.07 percent, while the inclusion level only reached 13.24 percent.

Wibowo then reminded that sharia economics should not be viewed solely through religious values, but also as an economic system grounded in universal principles of fair trade.

By ensuring supply chains adhere to halal and thayyib (wholesome) principles, sharia economics is expected to promote fair trade that benefits all parties.

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