Indonesia Confident of Reaching 8% Economic Growth, Cites Reforms and Resilience

Indonesia's Finance Minister Purbaya Yudhi Sadewa expressed strong optimism that the nation's economy could achieve an impressive 8% growth rate. This confidence stems from a robust national economic foundation, coupled with ongoing reforms in fiscal bureaucracy and a greater role for the private sector and investments in driving economic activity.

Speaking at the Indonesia 2026 Science, Technology, and Industry Convention, Sadewa highlighted the economy's resilience amidst global instability. He noted that Indonesia's economy still managed to grow by 5.61 percent during a period of global turmoil, characterizing this performance as the "economic growth engine has just started to warm up."

To further accelerate this growth, the Ministry of Finance is actively deploying instruments like the Indonesian Export Financing Agency (LPEI). LPEI offers a Financing Program for Economic Zones, providing export-oriented SMEs with financing at competitive rates, potentially as low as 4% per year. Sadewa believes that by first steering the economy towards a 6% growth range and then building on improvements in investment climate, exports, and national productivity, the 8% target is attainable.

This growth trajectory is supported by coordinated fiscal, monetary, and real-sector policies. The momentum of economic recovery, which began in late 2025, has been bolstered by government measures focused on increasing liquidity, investments, public consumption, and accelerating state spending. Furthermore, fiscal reforms in taxation and customs are expected to strengthen state revenue and create more fiscal space for development, reinforcing the positive outlook.

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Even amidst global turmoil, we can still grow by 5.61 percent. This shows that the economic growth engine has just started to warm up.