Indonesia Launches National Productivity Master Plan To Power Growth Through 2029
KUALA LUMPUR, Oct 9 (Bernama) -- The Government of Indonesia has launched the National Productivity Master Plan (MPPN) 2025–2029, a whole-of-nation blueprint for accelerating innovation, strengthening industrial competitiveness, and raising living standards through sustained productivity gains.
Unveiled at a ministerial ceremony in Jakarta on Oct 7, the plan aligns policy and execution across central agencies, provinces, and the private sector to drive a shift from input-driven growth to growth led by total factor productivity (TFP).
The launch featured addresses by Asian Productivity Organization (APO) Secretary-General, Dr Indra Pradana Singawinata, and Indonesian ministers underscoring the unified commitment to productivity as the pathway to higher-quality jobs and Indonesia Emas 2045 (Golden Indonesia 2045).
The MPPN sets out an integrated agenda to boost productivity across the economy by diffusing technology and management excellence in firms; upgrading workforce skills for digital and green transitions; and deepening value chains and export capabilities, among others.
“Over the long run, a nation’s standard of living is determined by its ability to raise output per worker, its productivity. By creating more value from every hour worked and every rupiah invested, Indonesia can lift real wages, lower costs, expand opportunities, and strengthen social and economic resilience,” said Dr Singawinata in a statement.
Implementation of the MPPN will focus on establishing rigorous governance with the National Development Planning Agency (BAPPENAS) as integrator; alignment of central and provincial governments to ensure policy translates into delivery; and accelerating firm-level adoption through demonstration and diffusion projects.
In addition, it will focus on skills and technology upgrading to raise TFP; and have quarterly and annual performance reviews to track outcomes and iterate, while the government has also invited businesses, academia, and provinces to join a shared productivity agenda that scales innovations from pilots to national impact.
This initiative was developed with the support of the APO as part of its advisory role to APO member economies, which includes policy assistance, capacity building, and demonstration projects that help embed productivity as a daily practice across the economy.
-- BERNAMA