Luhut States 8-9% Economic Growth Target Achievable

National Economic Council Chairman Luhut Binsar Pandjaitan stated that an 8-9% economic growth rate is expected to be achieved over time. This assessment is based on government projects costing up to Rp1 trillion per day, spanning from high-level initiatives to community-level programmes.

‘Over time, with deregulation, efficiency improvements, and reduced corruption, the 8-9% growth target will be achieved,’ he said after attending a seminar at his Jakarta office on Monday, 25 May 2026.

The project allocating approximately Rp1 trillion daily is the Free Nutritious Meals (MBG) initiative, a priority despite public criticism. Luhut noted its impact on economic growth, with Q1 2026 reaching 5.61%.

Despite substantial national spending on MBG, Luhut is confident the fiscal deficit will remain under 3% this year, compared to 2.92% in 2025.

‘The President has mentioned some MBG elements are not yet ready, so we redirect them elsewhere. That’s a very good step,’ he said.

Deputy Finance Minister Suahasil Nazara stated the government would maintain APBN credibility through adaptive management and economic situation adjustments. Last year, four economic stimulus packages were launched for the public while keeping the fiscal deficit below 3%.

‘Indonesia is a good bargain with its adaptive and flexible APBN management,’ he added.

Besides MBG, Suahasil said the budget is also allocated to other priority government programmes such as Red and White Cooperatives, people’s schools, elite schools, and healthcare facility improvements. Budget allocations also collaborate with Danantara, the government’s investment partner for other projects.

‘We are confident of higher growth towards 8%, in line with President Prabowo’s target during his administration,’ he concluded.