Luhut: 8-9% Economic Growth Can Be Achieved

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan expressed confidence that Indonesia can achieve an economic growth rate of 8-9% over time. He pointed to the significant daily expenditure on government projects, estimated at Rp 1 trillion (approximately $61 million USD), as a key factor supporting this projection.

"So, over time, 8-9% growth with deregulation, efficiency, and reduced corruption will be achieved," Pandjaitan stated after attending a seminar in Jakarta on Monday, May 25, 2026. He highlighted the 'Free Nutritious Meals' (MBG) program as a priority, acknowledging that it has faced public criticism. Despite the substantial spending on MBG, Pandjaitan believes the state budget deficit will not exceed 3% this year, a figure consistent with the 2.92% deficit recorded in 2025.

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So, over time, 8-9% growth with deregulation, efficiency, and reduced corruption will be achieved.

Pandjaitan also noted that President Prabowo has indicated flexibility regarding the MBG program, stating that funds can be reallocated if certain aspects are not yet ready. "The President has also said that if something is not ready with MBG, we will redirect it elsewhere. I think that is a very good step," he commented.

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The President has also said that if something is not ready with MBG, we will redirect it elsewhere. I think that is a very good step.

Deputy Minister of Finance Suahasil Nazara added that the government is committed to maintaining credibility in its adaptive management of the state budget. He mentioned that Indonesia offers a "good bargain" due to its flexible and adaptive fiscal management. Last year, the government launched four economic stimulus packages while keeping the budget deficit below 3%.

Nazara further explained that besides the MBG program, the state budget also funds other government priorities such as the 'Koperasi Merah Putih,' community schools, superior schools, and healthcare facility improvements. The budget allocation also involves collaboration with the Nusantara Investment Management Agency (Danantara) for other government projects. "We are confident that growth will be higher, moving towards 8% according to President Prabowo's target during his administration," Nazara concluded.

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We are confident that growth will be higher, moving towards 8% according to President Prabowo's target during his administration.