Indonesia Shifts to Productive Growth, Says Finance Minister

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April 21, 2026 | 08:25 am

TEMPO.CO, Jakarta Finance Minister Purbaya Yudhi Sadewa said Indonesia is shifting its development focus not only to maintaining stability, but also toward more productive, value-added growth and the creation of quality jobs.

In an official statement received in Jakarta on Monday, April 20, 2026, Purbaya said the transformation is driven by three main pillars: investment, industrialization, and productivity.

“We are encouraging downstream industries, strengthening the manufacturing sector, and improving human resources and efficiency. Going forward, Indonesia’s growth will not only be stable, but also more productive, sustainable, diversified, and resilient,” Purbaya said during a series of agendas at the IMF-World Bank Spring Meeting held on April 13–17 in Washington, DC, United States.

In addition, Purbaya said Indonesia’s current economic performance remains relatively strong compared to G20 countries and other developing nations. This is supported by solid growth, low inflation, as well as well-maintained deficit and debt ratios.

This resilience is inseparable from the role of the state budget (APBN) as a shock absorber in protecting people’s purchasing power. The Ministry of Finance also continues to maintain fiscal discipline below the 3 percent deficit limit against Gross Domestic Product (GDP).

“Indonesia will optimize the synergy of fiscal and monetary policies, as well as leverage Danantara’s role in mobilizing investment outside the state budget,” he said.

Furthermore, during the IMFC Restricted Breakfast Meeting, Purbaya expressed optimism that Indonesia’s economy could achieve growth of 5.4 to 6 percent in 2026, despite ongoing global tensions.

This optimism is supported by a solid national economic foundation. While many countries are experiencing slowdowns, Indonesia’s economy grew by 5.11 percent in 2025.

In addition, Indonesia’s trade balance recorded a surplus of US$1.27 billion in February 2026, extending its surplus trend to 70 consecutive months.

This positive performance is supported by strong household consumption, controlled inflation, a maintained fiscal deficit, a low debt-to-GDP ratio, and the continuation of downstreaming policies.

Nevertheless, Purbaya emphasized that the government remains vigilant toward global dynamics, including tensions in the Middle East that could affect energy prices.

The government has prioritized building fiscal buffers to absorb price shocks and ensure the stability of subsidized fuel to protect people’s purchasing power.

In response, the government will continue to promote state spending efficiency and accelerate long-term structural transformation, including strengthening downstreaming programs.

Read: IMF Praises Indonesia as 'Bright Spot' in Global Economy, Says Purbaya

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