Unleashing Indonesia’s Growth: Private Sector as the Engine, Public Sector as the Enabler

President Prabowo Subianto has set an ambitious yet attainable vision: an Indonesia that grows at 8 percent annually, driven primarily by the private sector. This vision rests on a fundamental principle, that economic dynamism and innovation must come from the marketplace, while the government ensures the right environment for such growth to thrive. For Indonesia to realize this trajectory, over 70 percent of economic activity must be led by private enterprise, with the public sector acting as the architect of fairness, efficiency, and trust.

The Balance Between Public Servants and Private Enterprise

The debate over the ideal balance between government employees and private sector participation is not new. However, the era of rapid technological and economic transformation demands a fresh perspective. Indonesia does not need a large bureaucracy, it needs an effective and data-driven public service that acts as a catalyst for business confidence and citizen welfare.

Public officers should focus on what governments do best: policy, regulation, supervision, and public service delivery. The rest, particularly operations that can be performed more efficiently by private players, should be delegated or outsourced. This is not a call for downsizing government, but for “right-sizing” it, ensuring every public employee is empowered by digital tools and performance accountability to serve with measurable impact.

Rather than competing with the private sector, the state must create an enabling ecosystem. An efficient bureaucracy lowers transaction costs, accelerates investment flows, and enhances productivity. When the government operates like an intelligent platform, providing data, regulation, and trust, private businesses can focus on innovation, expansion, and job creation.

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Digital Government and the Power of Unified Data

The key to achieving efficiency in governance lies in digital transformation. A fragmented government, where ministries and agencies hold separate databases and systems, creates redundancy, inefficiency, and frustration for both citizens and businesses. The path forward is to establish a Single National Data Platform, a unified and interoperable data system accessible across ministries and government levels.

This “One Data” approach enables seamless public services. For instance, a citizen or entrepreneur should only provide their data once, after which all ministries, from Trade to Finance, Tourism to Cooperatives, can access the same verified information. This reduces bureaucracy, eliminates corruption opportunities, and dramatically cuts service delivery times.

Digital government is not only about technology; it is about reimagining the role of the state. It allows public officers to transition from administrative clerks to data-driven problem solvers. Their mission should shift from processing papers to delivering measurable outcomes, faster permits, clearer regulations, and tangible support for citizens and enterprises.

When the government works as a digital ecosystem, its efficiency multiplies. It can target social programs more precisely, guide investment through real-time data, and build policy based on facts, not assumptions. Digitalization empowers public officers to become facilitators of growth rather than gatekeepers of process.

Empowering the Private Sector, Enabling the People

With a lean, transparent, and digital government, Indonesia can unlock the full potential of its private sector. Small and medium enterprises, startups, and large corporations alike will operate in an environment where permits are fast, regulations predictable, and public data open for innovation.

Such an approach transforms governance into a partnership. The state remains the steward of justice and welfare, while private actors drive production, innovation, and employment. The result is not only higher GDP growth but also shared prosperity, where government efficiency translates into better services, lower costs, and more opportunities for citizens.

The Road to an 8 Percent Indonesia

Reaching 8 percent growth requires more than optimism, it requires discipline, coordination, and reform. Indonesia must:

1. Audit and optimize the public workforce to ensure every function adds measurable value.
2. Implement a unified data infrastructure that allows interoperability among ministries and regions.
3. Digitalize all core government services, including licensing, taxation, and social protection.
4. Promote public-private collaboration in innovation, technology infrastructure, and capacity building.
5. Embed performance-based governance, where outcomes, not procedures, define success.

This is how Indonesia transforms its government from an operator into an orchestrator, from bureaucracy to platform, from manual process to digital precision.

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President Prabowo’s vision for an Indonesia powered by private enterprise is a call to maturity, a transition from a state-centered economy to a partnership model where both the public and private sectors perform their best roles. The government’s strength lies not in its size but in its ability to enable, regulate, and empower.

A smaller but smarter state, connected through one data, guided by performance, and open to innovation, is the key to building an Indonesia that grows faster, governs better, and serves all.