Economist: Indonesia Must Approach 6% Growth This Year to Hit 8% Target

A senior economist has outlined a strategy to bring Indonesia’s economic growth to 8%.

Prasasti Center senior economist Piter Abdullah said that to achieve 8% growth, Indonesia must raise its growth rate and no longer be stuck at 5%.

He argued that to reach 8%, the economy must grow by at least 6% this year.

“The government has already announced an 8% growth target, although it has not specified the year, but the direction towards 8% should already be visible. Even if not this year, it should be approaching 6% this year,” Piter said in an exclusive interview with CNBC Indonesia, quoted on Thursday (6/8/2026).

If the Indonesian economy can grow 6% in 2026, then to reach 8%, it would need to grow 7% in 2027.

“If it grows 6% in 2026, next year it could grow 7%, and the year after that it could reach 8%,” Piter explained.

In addition, the government must build the economic foundations so that 8% growth can be achieved within the set timeframe.

“The foundation for achieving higher growth must be prepared by the government, because that is part of the government’s efforts to reach the 8% target,” he said.

Finance Minister Purbaya Yudhi Sadewa has affirmed that he will continue to push the engines of economic growth, particularly in the second half of this year.

He has prepared a number of policies to ensure the growth trend can accelerate beyond the second quarter of 2026 realisation of 5.29% and the first quarter of 2026 figure of 5.61% year-on-year.

“Going forward, I am confident that in the third and fourth quarters we will push towards a faster pace towards 6% by maximising all the engines in the economy,” Purbaya said.

The measures to be taken by the finance minister include increasing money supply in the economy and lowering lending rates.

“Increasing money in the economy and pressing deposit rates, pressing the rates demanded by the SMVs under the government down to a low level so that banks can place or provide loans at lower interest rates,” he said.

Purbaya is increasing money in the economy by adding around Rp70 trillion in excess budget balance funds to the state-owned banks association.

The injection of these funds has been carried out in stages.

He said the government has placed Rp40 trillion in state banks today and the remaining Rp30 trillion next week.

“The sharing is the same as before. So Rp70 trillion is being added this week,” Purbaya said.

Purbaya will also cap deposit rates at special mission vehicles to press down bank lending rates.

Deposit rates at finance ministry SMVs will be set at 80% of the Bank Indonesia rate.

“I will limit the rate level demanded to be the same as the government when we place money in banks, which is 80% of the BI rate,” he said.