Economy Grows 5.61%, Purbaya Says New Growth Engine is Warming Up

Finance Minister Purbaya Yudhi Sadewa stated his optimism that the Indonesian economy is capable of growing by 8%. This optimism is based on the strengthening of national economic foundations, bureaucratic fiscal reform, and the increasing role of the private sector and investment in driving economic activity. “When the global situation is volatile, we can still grow 5.61% (in the first quarter), this means the new growth engine is being warmed up,” the Finance Minister said at the Indonesian Science, Technology, and Industry Convention 2026 in Jakarta. One of the growth engines being pushed is the Indonesia Eximbank (LPEI), an institution under the Ministry of Finance, which is expected to become a motor for exports. “At the Ministry of Finance, there is LPEI which has an Economic Zone Financing Programme for SME exporters; we offer a maximum interest rate of 6% per year, even 4% if necessary for growth,” he added. Purbaya assessed that economic growth can be accelerated gradually, starting by bringing the growth rate to around 6%, then increasing it further as the investment climate, exports, and national productivity improve. He believes this target is realistic if all fiscal, monetary, and real sector policy instruments work in harmony, supported by the recovery momentum since late 2025 and policies focused on increasing liquidity, investment, public consumption, and accelerating state spending. Purbaya also emphasised that the Ministry of Finance’s efforts to support growth include fiscal reforms, particularly in taxation and customs, which are expected to strengthen state revenue while creating greater fiscal space to support development.