Antara News·Indonesia·Tuesday, October 13, 2026 at 09:17 AM UTC

Indonesia targets eight percent growth to capture demographic bonus

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Bayu Saputra, Yashinta Difa

Jakarta (ANTARA) - Indonesia must achieve an eight percent economic growth target to fully capitalize on the country's remaining demographic bonus before entering an aging population phase, according to Deputy Finance Minister Juda Agung.

Speaking at the Prasasti Indonesia Policy Forum 2026 in Jakarta on Tuesday, Agung highlighted that Indonesia has a narrow window of 10 to 15 years to optimize its demographic potential through labor productivity, human resource quality, and accelerated job creation.

"Indonesia is facing a demographic opportunity that will not recur or remain open indefinitely. Over the next 10 to 15 years, Indonesia still has the chance to leverage the demographic bonus, driven by a large workforce, a young generation that is increasingly digitally connected, and a vast domestic market," Juda remarked.

He explained that a large working-age population alone does not automatically guarantee economic development unless supported by adequate workforce skills and sufficient employment opportunities.

Failure to align job creation with market demands and raise productivity could cause the nation to miss its "golden period," he warned.

"We must not become a nation that grows old before it becomes wealthy," Juda stressed.

According to demographic projections cited by the ministry, Indonesia’s dependency ratio is expected to rise from 46.5 in 2025 to 46.8 in 2030, before increasing significantly to 59.7 by 2045.

This trend indicates a growing non-productive age population relative to the working-age demographic, posing a critical challenge to national economic momentum before population aging sets in.

Juda noted that reaching the 8 percent annual economic growth target requires immediate synergy between public and private stakeholders.

"If both the public and private sectors do not act collectively with a sense of urgency regarding this 8 percent target, the opportunity will be lost," he said.

In addition to leveraging the demographic bonus, Juda underscored the necessity for Indonesia to transition away from low-value-added economic activities and raw natural resource exports.

He called for structural economic reforms, including developing complex domestic industries, fostering innovation, and strengthening linkages between education, research, technology, and manufacturing output.

"We must move from simply possessing natural resources to mastering the ability to process them; from merely producing goods to designing and developing high-value-added products; and from being just a market for global products to becoming an integral part of the global value chain," Juda added.

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