Indonesian Political, Business & Finance News

Aiming for 6 Per Cent Economic Growth in 2027, Purbaya Targets 7 Per Cent Investment Growth

| Source: VIVA Translated from Indonesian | Economy
Aiming for 6 Per Cent Economic Growth in 2027, Purbaya Targets 7 Per Cent Investment Growth
Image: VIVA

Jakarta, VIVA – Finance Minister Purbaya Yudhi Sadewa is targeting investment growth of up to 7 per cent to boost economic growth to reach the 6 per cent target by 2027.

“To drive higher economic growth to reach 6 per cent in 2027, an acceleration of investment growth to 7 per cent is required,” said Purbaya during a working meeting with Commission XI of the Indonesian House of Representatives (DPR RI) in Senayan, Jakarta, on Tuesday, 1 September 2026.

He stated that achieving this target will be carried out through collaboration between the government, the private sector, and Danantara.

The government will act as an investment catalyst, while the private sector is expected to be the primary driver of investment. Meanwhile, Danantara is directed to accelerate productive investment, particularly in strategic sectors and downstreaming processes that offer high added value, he explained.

“To ensure every instrument can work optimally and strengthen one another, the government will strengthen the synergy between fiscal policy, monetary policy, the financial sector, and Dansemantara,” said Purbaya.

He added that investment acceleration must be accompanied by macroeconomic stability to create certainty, increase the confidence of economic actors, and encourage sustainable investment. According to Purbaya, the government will maintain this stability through several policies, including inflation control to protect public purchasing power, consumption, and investment.

Furthermore, the government will keep interest rates competitive to support access to financing, strengthen business confidence, and encourage investment activities. The government, alongside Bank Indonesia (BI), will also continue to maintain the stability of the rupiah exchange rate.

“These policies are aimed at strengthening economic resilience, mitigating global impacts, and providing certainty for the business world in making investment and expansion decisions,” he said.

Purbaya noted that the investment growth target is supported by national economic fundamentals that remain stable amidst global uncertainty. In the first semester of 2026, the Indonesian economy grew by 5.45 per cent cumulatively, while inflation remained controlled. Banking liquidity was also deemed adequate to support credit distribution.

Indonesia’s trade balance for January-June 2026 continued to record a surplus, while foreign exchange reserves as of July 2026 reached US$145.3 billion. Positive sentiment in the domestic financial market also continues, reflected in the appreciation of the rupiah exchange rate, the strengthening of the Jakarta Composite Index (IHSG), and conducive developments in Government Securities (SBN) yields. Meanwhile, capital inflows up to 28 August 2026 were recorded at Rp 140.6 trillion.

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