Government prepares 2026 downstreaming sectors to boost investment, create job

  • Published on 18/08/2025 GMT+7

  • Reading time < 1 minute

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

The government has put agriculture, maritime affairs and fisheries sectors into the 2026 downstreaming program, with the total national investment value projected to increase by 20.35 percent from Rp6,910 trillion (US$427 million) to Rp7,450 trillion.

In an effort to achieve its target of contributing to formal job creation next year, the Ministry of Manpower will optimize formal job creation through its downstreaming program.

"This year alone, several downstreaming projects are underway. Next year, the downstreaming program will be the main source of job creation with better quality work," Minister of Manpower, Yassierli, said at the Presidential Palace in Jakarta on Sunday, August 17, 2025.

He cited that the government still has several tasks to do, particularly regarding welfare and the employment ecosystem.

On the other hand, the Asian Productivity Organization (APO) recorded that Indonesian labor productivity growth has never exceeded 4 percent since 2012, excluding the COVID-19 pandemic.

The highest figure reached 10.31 percent annually in 1995 and 9.86 percent in 2021. Furthermore, national labor productivity plummeted to minus 4.99 percent in 1978 and minus 2.58 percent in 2020. As a result, the average labor productivity growth from 2013 to 2022 was only 2.6 percent per year.

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