Purbaya Confident Economic Growth Can Approach 6 Percent, APBN as a Shield

JAKARTA - The Chairman of the Financial System Stability Committee (KSSK) and Finance Minister Purbaya Yudhi Sadewa is optimistic that Indonesia’s economic growth in 2026 can approach 6 percent, even amidst high global uncertainties.

The global uncertainties referred to by Purbaya stem from the escalation of Middle East conflicts and the surge in global energy prices.

Purbaya stated that the government will continue to utilise the State Revenue and Expenditure Budget (APBN) as the primary instrument to maintain the resilience of the domestic economy amid global financial market volatility.

Purbaya explained that the stability of the national financial system remains well-maintained to date, despite increasing global pressures.

According to him, the Middle East conflict continues to be the main factor triggering financial market turbulence and rises in global energy prices.

Therefore, the KSSK, comprising the Ministry of Finance, Bank Indonesia, the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS), will continue to conduct forward-looking assessments of the national economy and financial sector conditions.

Nevertheless, he assesses that the domestic economic conditions in the first quarter of 2026 remain sufficiently strong.

Indonesia’s economic growth in that period was recorded at 5.61 percent.

According to Purbaya, the government is also preparing additional stimuli in the second quarter of 2026 to keep the economic growth momentum intact.

He said the APBN has played an important role as a shock absorber to mitigate the impact of global turbulence on the national economy.

Purbaya noted that the realisation of state expenditure so far has supported public consumption through the disbursement of holiday allowances for civil servants, the military, police, and pensioners, nutritious food programmes, as well as social assistance such as staple food cards and National Health Insurance (JKN) contribution aid.

In addition, the government is directing capital expenditure to support economic growth through the construction and rehabilitation of roads, irrigation, networks, as well as the procurement of equipment and machinery.