Private Sector Urged to Accelerate Economic Growth by 2027

The government is targeting Indonesia’s economic growth to reach between 5.8% and 6.5% by 2027, relying on the role of the private sector, which is seen to be regaining momentum. This target is part of a broader strategy to achieve 8% economic growth by 2029.

Finance Minister Purbaya Yudhi Sadewa stated that this optimism is based on economic achievements throughout 2026, which show a positive trend. In the first quarter of 2026, economic growth was recorded at 5.61% and is expected to continue strengthening to approach 6% by the end of the year.

“Right now, even this year, we are pushing to approach 6%, so the opportunity is very large. I hope that by next year, the private sector engines will be running better than they are now,” he said during a press conference at the DPR Building on Wednesday (20/5).

According to him, the private sector’s contribution to economic growth is becoming visible, although it has not yet reached full optimisation. The government intends to further strengthen this momentum so that the pace of economic growth can increase higher in the coming years.

“This is with the private engines just starting to move; it is not yet at full capacity. I believe that next year they will move faster,” he added.

Previously, President Prabowo Subianto announced the economic growth target of 5.8% to 6.5% within the 2027 Macroeconomic Framework and Main Points of Fiscal Policy (KEM-PPKF). The government considers these figures to be an important foundation towards the 8% economic growth target for 2029.

“With the right economic strategy and prudent and sustainable fiscal policies, I am confident that Indonesia’s economy can grow by 5.8%-6.5% towards an 8% economic growth rate in 2029,” said Prabowo.

In the 2027 fiscal policy draft, the government also targets the state budget deficit to be within the range of 1.8% to 2.4% of Gross Domestic Product (GDP). Meanwhile, state revenue is projected to reach 11.82% to 12.4% of GDP, with state expenditure ranging between 13.62% and 14.8% of GDP.

“We will maintain the state budget deficit within the 1.8% to 2.4% range. We will continue to strive to reduce the deficit,” concluded Prabowo.