Purbaya Targets 5.7% Economic Growth, Focus on Labour-Intensive Industry Financing

The government is targeting economic growth of around 5.7% in the second quarter of 2026. This target is being driven through stimulus, accelerated state spending, and strengthening financing for labour-intensive industries. Finance Minister Purbaya Yudhi Sadewa believes that the opportunity is still open. The government has time until the end of June to maintain momentum. “We will push towards that (5.7%). There are still May and June, then we will look at the data and give another push to the economy,” said Purbaya on Friday (25/4/2026). One of the steps being prepared is accelerating the realisation of ministry and agency spending. This effort is expected to speed up the flow of liquidity into the economy. The government is also preparing other instruments. Cash assistance and other supporting policies are directed towards maintaining purchasing power and economic activity. Purbaya assesses that rising commodity prices do not always have a negative impact. The price of crude palm oil (CPO) serves as an example. A global price increase can drive domestic adjustments. The impact depends on the magnitude of the increase and policy responses. Cross-ministerial coordination will be strengthened to maintain price stability. “The main thing is to maximise all programmes so that the economy runs well, not to add new stimuli,” explained Purbaya.