Jakarta, February 18, 2025 - Bambang Brodjonegoro, the Special Advisor to the President for Economic Affairs, said that both public and private investment play a key role in the Indonesian Government’s objectives to achieve higher economi growth rate while alleviating poverty.

Speaking at the 2nd plenary session titled ‘A High Growth Strategy for 0% Poverty during the first day of the Indonesia Economic Summit today, Bambang Brodjonegoro, who also previously served as Indonesia’s Finance Minister, sai poverty is due to a combination of both low income and high basic expenses.

Therefore, the Indonesian Government’s plan is to attract private investment that wil create both economic opportunities and job opportunities, while investment in the public sector such as healthcare services, clean water and sanitation will help the nation’s poor to reduce the cost of basic needs, according to Bamban Brodjonegoro.

Indonesia’s poverty level reached 8.57% in September 2024, the lowest level o record since 1960. Poverty line in Indonesia is defined as the minimum amount of money required to provide a basic nutritional need of 2,100 calories per person per day, or equivalent to expenditures of IDR 595,242 per capita per month.

The government has set an ambitious goal to eliminate extreme poverty – defined as expenditures of less than $2.15 per person per day by The World Bank – by 2024. The latest publicly available data showed the country managed to decrease extreme poverty to 0.83% in March 2024 from 1.12% a year earlier.

Ricardo Hausmann, Founder and Director of Harvard’s Growth Lab, said poverty is th consequence of low productivity, and therefore the solution is to make the economy work more inclusively and create more and better quality jobs. “Inclusivity causes growth,” sai Richardo Hausmann.

“I think growth and poverty reduction are two sides of the same coins. In a sense that higher GDP per capita implies more jobs per capita. If you want to grow, you need more jobs and have the jobs to be more productive.

Paul Polman, Business Leader, Campaigner and Co-Author of Net Positive, said policy makers and business leaders must be equipped with the conviction to take action with a long-term view. “Sometimes it is easier to the wrong things, than doing the right things for the long term,

According to Paul Polman, President Prabowo Subianto’s Free Nutritious Meal (MBG) initiative is one such example that has the potential to have a lasting impact by acting on challenges of insufficient nutritions among the poor. “Some if we don’t act it will make a higher cost then if we do act,” said Paul Polman

Arsjad Rasjid, the Chairman of the Board of Trustees of the Indonesian Business Council, said the private sector can play more role in delivering high growth while ensuring prosperity is shared with all Indonesians.

About the Indonesia Economic Summit (IES): The Indonesia Economic Summit (IES) serves as the annual flagship event of the Indonesian Business Council (IBC). This prestigious high-level forum is meticulously designed to convene business leaders, policymakers, global thinkers, and industry champions. The summit’s primary aim is to elevate Indonesia’s profile on the international stage as a dynamic growth hub, fostering the promotion of investments and expanding the scope of economic and business interactions with the global business community. The IES inaugural summit will be held for two days on 18-19 February 2025 at the Shangri-La Hotel in Jakarta, Indonesia

About the Indonesian Business Council (IBC): The Indonesian Business Council (IBC) is an association of business and industry leaders in Indonesia. Established in February 2023, IBC’s vision is to foster a powerful alliance promoting collaboration between the private and public sectors. IBC aims to enhance Indonesia’s competitiveness, strengthen the national economy, and improve the prosperity o its people. IBC produces research-based policy recommendations by combining rigorous research with data-driven analysis, and insights from business and industry leaders. It advocates for strategic policy changes and initiatives that promote economic growth. For media inquiries, please contact:
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