Indonesian Economy Grows 5.61% Amid Global Turmoil, Purbaya: New Economic Engines Being Warmed Up

Finance Minister Purbaya Yudhi Sadewa stated that the government is currently intensifying efforts to strengthen the national economic foundation, reform fiscal bureaucracy, and enhance the role of the private sector and investment in driving economic activity. Speaking at the 2026 Indonesian Science, Technology, and Industry Convention at JCC Senayan, Jakarta, Purbaya expressed optimism that Indonesia’s economy could grow by up to 8 percent. “Even when global conditions are in turmoil, in the first quarter of 2026 we still managed to grow 5.61 percent. So this economic growth engine is really just being warmed up,” Purbaya said in Senayan, Jakarta, on Sunday, 28 June 2026. He explained that one of the drivers of national economic growth is the Indonesia Eximbank (LPEI) under the Ministry of Finance, which is being accelerated to become a motor for exports. Currently, LPEI is running an Economic Zone Financing Programme for exporting SMEs, offering interest rates of 4-6 percent per annum to spur economic growth. Purbaya believes economic growth can be accelerated gradually, starting by bringing the growth rate to around 6 percent and continuing to increase as the investment climate, exports, and national productivity improve. He argued that this target remains realistic if all fiscal, monetary, and real sector policy instruments work in harmony, as seen in the economic recovery momentum since late 2025. This is further reinforced by various government policies focusing on increasing liquidity, investment, public consumption, and accelerating state spending. Purbaya added that other efforts to support national economic growth include fiscal reform, particularly in taxation and customs. He believes these steps will also strengthen state revenue while creating greater fiscal space to support development.