8% Economic Growth Target Is Not a Forecast, Finance Ministry Explains

The Ministry of Finance (Kemenkeu) has revealed that the 8% economic growth target for 2029 is not simply a forecast, but a goal that will not be easy to achieve as it requires massive policy intervention.

Acting Director General of Financial Sector Stability and Development (DJSPSK) Herman Saheruddin stated that a growth target differs from an economic projection.

“So regarding the 8% growth target, we must remember that a target is different from a projection. For economists, a projection means guessing what the realisation will be. But a target is where we intend to go. If our target is high, say 8%, and we achieve 5.6%, that is already good, because we usually stagnate at 5%, and we also need to be aware that this is happening amid global turmoil,” Herman said when met by reporters at his office on Thursday (26/6/2026).

Herman continued that reaching the 8% economic growth target by 2029 will not be easy, requiring strongly integrated policies between the government and relevant institutions.

“So it means it is not easy, but with a mix of policies, carried out by the Ministry of Finance, Bank Indonesia, and other Financial System Stability Committee (KSSK) institutions, we can grow that much,” he explained.

He also explained the term self-fulfilling prophecy, a prediction that causes itself to come true, where if the government does not believe in the economic growth target, the Indonesian economy will continue to move stagnantly.

“As Minister Purbaya once said about the term self-fulfilling prophecy, what we worry about is that if we ourselves do not believe we can grow better, then we will just stay where we are. The issue of programme implementation at the micro level is what needs to be fixed, and that is why we are overseeing it together so that improvements can be made and the macro impact can be greater,” he clarified.