February 14, 2026 | 10:22 am
TEMPO.CO, Jakarta – Indonesian finance minister Purbaya Yudhi Sadewa said the government will accelerate economic activity in the first quarter of 2026, targeting growth of between 5.4 and 6 percent as part of a broader push to reach 6 percent expansion this year.
Speaking at the Indonesia Economic Outlook 2026 event hosted by the state’s sovereign wealth fund Danantara in Jakarta on Friday, February 13, 2026, Purbaya told business leaders and foreign guests that the government aims to break what he described as Indonesia’s long-standing “5 percent growth trap.”
“Our initial prediction is that the economy could grow between 5.5 and 6 percent. That may sound normal, but it would be extraordinary. If that happens, it means we have surpassed the 5 percent growth curse,” he said at Wisma Danantara, South Jakarta.
For the full year of 2026, the government projects growth in the range of 5.5 to 6 percent, above the 5.4 percent target set in the macroeconomic assumptions of the 2026 state budget.
Accelerated Spending
To achieve the target, the government plans to front-load Rp809 trillion (around US$—) in state spending during the first quarter. Key measures include boosting investment and strengthening household consumption.
Among the accelerated expenditures is Rp62 trillion allocated for the Nutritious Meal Program (MBG). The government will also disburse Rp55 trillion in holiday allowances for civil servants, members of the military, and police personnel in the first quarter.
Additional allocations include Rp6 trillion for disaster rehabilitation and Rp13 trillion for an economic stimulus package.
The development of the Red and White Village Cooperative program will absorb Rp90 trillion from the state budget and Danantara funds.
The government is also allocating Rp20 trillion for commercial housing construction and subsidies, alongside the groundbreaking of Danantara’s downstream industrial projects valued at US$7 billion (around Rp110 trillion).
Revenue and Deficit Outlook
On the revenue side, Purbaya said reforms have begun at the Directorate General of Taxes and the Directorate General of Customs and Excise to strengthen state income.
The 2026 state budget targets revenue of Rp3,153.6 trillion and spending of Rp3,451.4 trillion. The projected budget deficit stands at Rp695.1 trillion.
While the official growth assumption in the 2026 budget is 5.4 percent, Purbaya said the government is aiming higher.
“What is our economic growth target in this year’s state budget? 5.4 percent. But I will try to push it toward 6 percent,” he said.
Indonesia’s economy expanded by 5.11 percent in 2025, slightly above the 5.03 percent growth recorded the previous year. However, over the past decade, Southeast Asia’s largest economy has struggled to consistently exceed the 5 percent mark, a threshold policymakers now hope to break decisively.
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