Purbaya: Government Capable of Accelerating Growth Without Additional Budget

Finance Minister Purbaya Yudhi Sadewa stated that the government is capable of accelerating national economic growth without adding to the budget burden. His statement responds to the economic growth that reached 5.61% (year-on-year/yoy) in the first quarter of 2026. “Yesterday we succeeded, with the same budget, without additional funds, we could create faster growth,” Purbaya told reporters in Jakarta on Wednesday. As a note, the average national economic growth has hovered around 5%. For quarterly movements, the national economy in the first quarter of 2025 was recorded at 4.87% (yoy). Meanwhile, the latest record in the fourth quarter of 2025 showed economic growth at 5.39% (yoy). According to Purbaya, one of the driving factors for accelerating economic growth is the government’s injection of funds into the banking sector. The Finance Minister previously transferred Saldo Anggaran Lebih (SAL) funds from Bank Indonesia (BI) to several banks with a total value of Rp300 trillion. This policy aims to encourage the banking intermediation function by channelling credit to the real economy system. Purbaya described the design of this policy as an invisible hand, where the government drives economic activity without direct intervention. “By just transferring money from BI to the banks, that’s it, besides other programmes of course. Meaning, I can drive economic growth without capital,” he added. With the first quarter economic performance, Purbaya is optimistic about pushing growth towards 6% by the end of the year. The current economic movement is considered to show that the implemented policy strategy can drive the economy towards the government’s target. “If looking at the current results, it seems the strategy is bearing fruit, right. It seems the strategy is quite fitting and accurate. Later, if the other new programmes also start running and their impact begins to show in the economy, the growth should be even faster,” he said.