Purbaya Confident of 5.6 Percent Economic Growth in 2026, These Are the Driving Factors

The government remains confident that Indonesia’s economic growth in 2026 will be in the range of 5.5 to 5.6 percent, despite lingering global uncertainties. Finance Minister Purbaya Yudhi Sadewa emphasised that this optimism is not mere projection but the result of policy designs prepared from the outset. “So I’m not just optimistic, but it has indeed been designed by the President and us in the entire Cabinet to ensure that economic growth is not disrupted by global uncertainties,” Purbaya stated in an exclusive interview with KompasTV on Friday (17/4/2026). In previous periods, Purbaya noted, the distribution of state spending had caused liquidity to tighten, but this pattern has now been corrected. Additionally, the government is ensuring that the economic engine runs in balance between the public and private sectors. State spending continues to proceed, while the private sector is encouraged to remain expansive through the availability of liquidity. Purbaya explained that the government is accelerating actions against violations to prevent leaks and increase business confidence. This includes measures for debottlenecking and stricter enforcement of rules. This is seen as capable of enhancing business confidence while preventing corrupt practices. On the other hand, the government’s priority programmes continue without slowdown. The distribution of spending is also made more even throughout the year to optimise its impact on economic growth. According to Purbaya, this combination of policies ultimately maintains the resilience of domestic demand, which is the main driver of Indonesia’s economic growth. With this strategy, the government believes Indonesia can still record higher growth compared to several countries in the region. “So by maintaining the domestic demand I mentioned earlier, which is essentially safeguarding domestic demand, we should be able to grow quite well,” Purbaya said.