Here's Why Purbaya Is Confident Indonesia's Economy Can Grow 6.5% in 2027

Finance Minister Purbaya Yudhi Sadewa is pushing for Indonesia’s economic growth to reach 6.5% in 2027. He revealed the target during a working meeting with Commission XI of the Indonesian House of Representatives (DPR RI) at the Parliament Building on Wednesday. “The economy in 2027 will be in the range of 5.8 to 6.5%, with a trajectory towards 8% in 2029,” Purbaya stated at the meeting. Purbaya said achieving this economic growth can be supported by a very strong acceleration of investment, especially in high-value sectors. In order to attract investment, Purbaya’s approach of debottlenecking will continue. “These efforts are directed, among others, at simplifying the licensing process, strengthening legal certainty, and improving cross-sector and institutional coordination so that various structural barriers that have been hindering investment realisation can be removed,” Purbaya said. In addition, maintaining inflation stability within the target range of 1.5%-3.5% is also something the government will safeguard so that the 2027 economic growth can be achieved. “Efforts to control inflation are carried out through fiscal and monetary policy synergy to maintain the supply and price stability of commodities, especially food and energy,” he said. “Coordination between fiscal and monetary policy continues to be strengthened to ensure that fiscal and monetary policies run in harmony without causing a crowding-out effect, so that economic and financial market stability can be maintained to help support economic growth,” he continued. Purbaya outlined the direction of economic and fiscal policy for 2027, which is designed to promote higher economic growth while accelerating the improvement of public welfare. A Pro-Growth Pro-Welfare Strategy forms the foundation of the 2027 economic and fiscal policy to drive higher growth and welfare that is felt more quickly by the public. This strategy is implemented through synergies in fiscal, monetary, and financial sector policies, as well as strategic investment support to strengthen national economic transformation. “Through the synergy of fiscal, monetary, financial sector policies, and strategic investment support, the government is targeting higher economic growth with a faster increase in welfare. Economic growth must be felt widely by all citizens,” he said.