Finance Minister to Strengthen Regional Economies to Pursue 6.5% Growth in 2027

Jakarta (ANTARA) - Minister of Finance Purbaya Yudhi Sadewa stated that strengthening regional economies is a crucial part of the government’s strategy to achieve the 2027 economic growth target of between 5.8 and 6.5 percent. To reach this target, Purbaya said all sources of growth will be optimised, including regional investment, strengthening the real sector, and increasing economic activity across various regions. “We will ensure that banks have sufficient liquidity to support private sector growth. In this way, economic growth next year is expected to approach 6 percent or even higher,” Purbaya said during a meeting with the Regional Representative Council (DPD) in Jakarta on Monday. One form of regional economic strengthening is the opportunity for additional transfer funds to regions in the 2027 fiscal year, which is estimated to increase by up to Rp90 trillion. Additionally, the government continues to refine the Central and Regional Financial Relations framework, including the digitalisation of regional transfer funds, strengthening central and regional fiscal synergy, and the formulation of a regional Macroeconomic Framework and Fiscal Policy Principles. These measures are taken to ensure that regional development policies are more effective, accountable, and capable of delivering tangible impacts on public welfare. Purbaya noted that stronger regional fiscal capacity can drive more equitable development across all parts of Indonesia. Ultimately, he said strengthening regional economies serves not only as an instrument for equitable development but also as a crucial foundation for Indonesia to achieve higher, sustainable, and inclusive economic growth. “The government is committed to maintaining a healthy and prudent state budget, while at the same time ensuring that regions have sufficient room to grow. With stronger regions, national economic growth will be more optimal and public welfare can improve more rapidly,” he stated.