Deputy Finance Minister (Wamenkeu) Juda Agung is optimistic that\neconomic growth in 2026 will align with the 2026 State Budget (APBN)\nassumption of above 5 percent, and potentially even higher. According to\nhim, this is supported by positive indicators.<\/p>\n
\u201cWe see that in the first quarter, all the indicators show positive\nsigns. Fiscal spending is positive, with growth from spending around\n40%. Then, tax revenue year-to-date up to the end of March grew by\n20.7%, in January 30%, February also 30% year-to-date,\u201d said Juda during\nthe Indonesia Outlook discussion event in Jakarta on Tuesday (7\/4).<\/p>\n
\u201cThus, the deficit is somewhat larger compared to last year, because\nlast year\u2019s spending and taxes were very low, now it\u2019s 0.9%. So, looking\nat Q1, we are actually optimistic that our economy will grow even higher\nthan the APBN assumption of 5.4%, most optimistic 6%. So between 5.4% to\n6%,\u201d he added.<\/p>\n
Juda explained the assumptions to achieve that target. First, he\nsaid, maintaining people\u2019s purchasing power. The government will not\nraise subsidized fuel (BBM) prices.<\/p>\n
\u201cSecond, from the external side, there is actually a natural hedge;\nwhen oil prices rise, prices of our export commodities, coal, CPO,\nexperience increases. So there is windfall revenue from here,\u201d said\nJuda.<\/p>\n
The government will continue to boost revenue from the collection\nside, with Coretax and so on. According to him, there are indications\nthat state revenue will be much better compared to last year.<\/p>\n
\u201cFrom spending, because subsidy spending is rising, we manage it so\nthat other spending is more efficient but still effective to drive\npriority programmes. There are rooms for efficiency,\u201d revealed Juda.<\/p>\n
These are the things, he continued, that the government manages so\nthat overall the APBN deficit can still be kept below 3%, with economic\ngrowth, especially from people\u2019s purchasing power, still maintained.<\/p>\n
\u201cExports are positive from our commodity prices. For investment, we\nhope for the role of Danantara to encourage private investment, so if\nfrom the constellation of C, I, X and also more efficient G, our growth\nin 2026 we estimate will still be within the APBN assumption range, 5.4%\nto 6%,\u201d he emphasised.<\/p>\n
Juda also did not deny the APBN burden due to the escalation of world\noil prices. For information, in the 2026 APBN assumption, the average\nworld oil price is US$70 per barrel (around Rp1,195,000).<\/p>\n
\u201cNow the average oil price from January to April is US$78. So\ncompared to the APBN assumption, it\u2019s not far off,\u201d he said.<\/p>\n
\u201cWell, if this persists and the average could reach US$100, our\ndeficit can still be kept below 3%. Yesterday it was also conveyed by\nthe Finance Minister in the DPR that it\u2019s still above 2.9%. I think we\ncan manage from revenue, from spending that we arrange to be more\nefficient and so on, so it\u2019s still below 3%,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/deputy-finance-minister-optimistic-about-2026-economic-growth-ranging-from-5-4-to-6-percent-heres-why-1775602278", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }