Indonesia urged to reach 8 per cent growth before population ages

Indonesia needs annual economic growth of 8 per cent to make full use of its demographic advantage before its population ages, Deputy Finance Minister Juda Agung told the Prasasti Indonesia Policy Forum 2026 in Jakarta.

Agung said the country has 10 to 15 years to benefit from its sizeable workforce, digitally connected younger generation and large domestic market. He urged public and private stakeholders to work together urgently towards the growth target.

Having many people of working age would not, by itself, deliver economic development, he said. Workers also need adequate skills and access to enough jobs. He warned that Indonesia could miss this opportunity if employment creation fails to meet market needs and productivity does not improve.

Demographic projections cited by the Finance Ministry put Indonesia’s dependency ratio at 46.5 in 2025, rising to 46.8 in 2030 and 59.7 by 2045. The projections indicate an increasing proportion of people outside productive age relative to those of working age.

Agung also called for structural reforms to reduce reliance on raw resource exports and activities that generate little added value. His priorities included more complex domestic industries, innovation and closer connections among education, research, technology and manufacturing. He urged Indonesia to develop resource-processing capabilities and higher-value products, and take a greater role in global value chains.