Indonesia's economy to grow 6.5% in 2027, Purbaya says private sector to drive

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa is optimistic that Indonesia’s economy can reach 6.5 percent growth in 2027. Purbaya regards the target as achievable as the private sector begins to move and the rupiah potentially strengthens. The government even targets this year’s growth to approach 6 percent. “Even now, this year we are pushing to approach 6 percent, so the opportunity is very substantial,” said Purbaya at a press conference presenting the Macro-Economic Framework and the Main Policies of Fiscal Policy (KEM-PPKF) 2027 at the Indonesian House of Representatives (DPR RI) on Wednesday, 20 May 2026. “I hope next year the private-sector engines are running better than now,” he said. Purbaya notes there remains ample room to accelerate growth because private sector activity has not yet fully recovered. “Even 5.6 percent, you doubt it. This is with private-sector engines just starting to move, not yet full,” he added. He is confident that the pace of economic growth will be higher next year as investment activity and the business world move more quickly. Even though the assumptions in the 2027 Macro-Economic Framework and the Main Policies of Fiscal Policy (KEM-PPKF) sit in the range of Rp 16,800 - Rp 17,500 per US dollar. According to him, those assumptions have been calculated by the government using an econometric model. “If I just stay still, it would stay at the current level. We have already entered the bond market, but there are also government steps that will cause the rupiah to strengthen significantly,” Purbaya said. “So those assumptions have been calculated with a reasonably good econometric model,” he added.