Indonesia Pushes for 6 Percent Economic Growth Despite Global Uncertainty

RRI.CO.ID, Jakarta - The Indonesian government continues to strengthen the country’s economic fundamentals to navigate global challenges while pushing for higher, more inclusive, and sustainable growth.

Amid geopolitical tensions, trade disputes, and pressures on energy and logistics, collaboration between the government, businesses, academia, and all stakeholders has become increasingly crucial to maintaining national economic resilience.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, said Indonesia’s economy grew by 5.45 percent in the first half of 2026, marking the highest growth rate in the past 13 years and placing Indonesia among the top performers in the G20.

“So, as we approach the end of the year, the President has asked us to push growth closer to 6 percent. This is certainly a challenge and requires hard work,” Minister Airlangga said during his keynote speech at the SUAR Forum 2026 in Tangerang Regency on Friday, August 21, as quoted on the ministry’s official website.

According to Minister Airlangga, global challenges remain significant, including geopolitical conflicts, developments in the Strait of Hormuz, and trade wars that affect trade and investment.

Despite these pressures, Indonesia’s fiscal position remains solid. State revenue grew 21.3 percent, spending increased 18.2 percent, and the budget deficit remained at 0.91 percent of GDP.

For 2027, the government has set targets of 6 percent economic growth, 2.5 percent inflation, a 10‑year government bond yield of 6.9 percent, and an exchange rate of IDR 17,500 per US dollar.

Planned state revenue amounts to IDR 3,426 trillion, with spending at IDR 4,097.2 trillion, financing at IDR 671.2 trillion, and a deficit of around 2.4 percent of GDP. Welfare targets include an open unemployment rate of 4.30–4.87 percent, poverty at 6.0–6.5 percent, and a Gini ratio of 0.362–0.367.

Minister Airlangga emphasized that raising growth from 5.45 percent to 6 percent requires additional momentum from several sectors. Investment must grow faster than GDP and be directed toward high value‑added projects that leverage domestic value chains.

Increasing human resource productivity and strengthening value‑added exports supported by logistics efficiency are also key components of the growth strategy.

The government is reinforcing six new growth engines: downstream and upstream industrialization, which has recorded 26 groundbreaking projects; energy self‑sufficiency through the implementation of B50 since July 1, 2026; the bullion and gold banking ecosystem managing around 179 tons of gold worth IDR 360 trillion; foreign exchange governance for natural resource exports through Danantara Sumberdaya Indonesia; digitalization, semiconductors, and artificial intelligence (AI); and the development of special economic zones (SEZs) and industrial areas as new growth centers.

On human resource development and financing access, the government continues to implement programs to boost productivity and expand access to capital. Internship programs target 150,000 graduates and vocational participants, with a broader goal of reaching 250,000.

The distribution of People’s Business Credit (KUR) is being expanded. The government is also strengthening support for women entrepreneurs by reducing PNM Mekaar interest rates from 18 percent to 8 percent for loans up to IDR 15 million.

The government is further expanding market access through economic diplomacy. Indonesia has ratified 25 trade agreements, while 13 others remain under negotiation.

Meanwhile, the OECD accession process continues, with Indonesia having submitted reports for 20 out of 24 chapters and achieving approximately 75 percent progress. Minister Airlangga stressed that these agendas require collaboration across all stakeholders under the Indonesia Incorporated framework.

“We must work together so that what we achieve can truly benefit all stakeholders. With strong economic fundamentals, prudent fiscal policies, and cooperation between the government and the business sector, we aim to maintain economic resilience and drive higher and more inclusive growth. Because if we truly want our country to be advanced and prosperous, we must achieve higher growth,” Minister Airlangga concluded. ***