Purbaya: Five Percent Growth Insufficient for Formal Jobs

Finance Minister Purbaya Yudhi Sadewa told the 100 Indonesian Economists gathering in Jakarta that Indonesia’s five‑percent economic growth is not enough to absorb all new entrants to the labour market each year.

He explained that most job absorption remains in the informal sector, and that a minimum annual growth of six point seven percent is needed to generate sustainable formal employment. He added that demand‑pull inflation risk stays low because growth has not exceeded six point five percent in recent years.

The remarks signal the government’s intent to boost higher‑quality growth to expand formal jobs, which could improve household welfare and fiscal stability.