Why Minister Purbaya Optimistic Indonesia Will Reach 6% Economic Growth in 2026

TEMPO.CO, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa, is optimistic about the country's economic growth next year. "I expect a faster growth, around 6 percent," he said in Jakarta on Sunday, November 16, 2025, as quoted by Antara.

The confidence, Purbaya said, comes from several economic policies that the government has been running. "If these policies continue to be well-implemented, we are headed in the right direction."

He also predicts that the country will hit 5.7 percent growth in the fourth quarter of 2025, with a fiscal deficit below 3 percent. "There's no need to worry that I will violate the principles of cautious fiscal management."

Purbaya earlier laid out the realization of economic growth during this year's third quarter to be at 5.04 percent, which indicated that the State Budget (APBN) had been managed effectively. He claimed that this momentum has had a positive impact on job creation for 1.9 million people.

The number of unemployed dropped 4,000 to 7.46 million compared to August 2024, lowering the open unemployment rate to 4.85 percent in August 2025. Meanwhile, household consumption recorded a 4.89 percent growth (yoy), in line with the increasing population mobility, digital transaction growth, and government policy support.

On the other hand, government consumption posted 5.49 percent growth, with spending on goods and employee spending growing by 19.3 percent and 9.0 percent, respectively. This reflects the government's commitment to maintaining the economic growth momentum and supporting purchasing power through accelerated and optimized spending.

Investment also grew by 5.04 percent (yoy), supported by business confidence in the prospects of the national economy and the government's commitment to creating a stable business climate and supporting business expansion.

Previously, Bank Indonesia (BI) has projected that Indonesia’s economy will grow by 5.33 percent in 2026, slightly below the government’s target of 5.4 percent.

The projection was presented by BI Governor Perry Warjiyo during a working meeting with Commission XI of the House of Representatives (DPR) on Wednesday, November 12, 2025.

“For 2026, our estimate for economic growth stands at 5.33 percent,” Perry said.

According to Perry, the forecast already factors in the global economic slowdown and its impact on Indonesia’s major trading partners. It also reflects BI’s policy direction aimed at stimulating domestic growth, including the potential reduction of benchmark interest rates.

Perry noted that there is still room for further rate cuts next year. In addition, BI plans to expand monetary liquidity, provide macroprudential liquidity incentives, and continue bond purchases in the secondary market as part of its efforts to support growth.

The government, meanwhile, maintains its 5.4 percent growth target for 2026. Perry said BI believes this goal remains attainable, depending on how quickly and effectively fiscal stimulus from the state budget (APBN) can be disbursed.

Ilona Estherina contributed to the writing of this article.

Editor’s Choice: Bank Indonesia Projects 5.33% Economic Growth for 2026

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