Govt pursues stronger economy through pro-growth, pro-welfare strategy

Jakarta (ANTARA) - The Indonesian government is pursuing national economic growth in 2027 through a pro-growth and pro-welfare strategy, as stated by Finance Minister Purbaya Yudhi Sadewa here on Wednesday.

"Through the pro-growth, pro-welfare strategy, the government is targeting higher economic growth while accelerating improvements in welfare," Minister Sadewa remarked during working meeting with Commission XI of the Indonesian House of Representatives (DPR RI).

In this strategy, he added, the government is targeting economic growth in the range of 5.8 percent to 6.5 percent in 2027 as part of a trajectory toward 8 percent economic growth by 2029.

Furthermore, investment is expected to increase by between 6.5 percent and 7.5 percent, with a focus on sectors that generate higher added value to achieve the target.

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He emphasised that debottlenecking initiatives aimed at resolving investment constraints will be expanded to support a more conducive investment environment through regulatory simplification, greater legal certainty, and stronger cross-sector collaboration.

In parallel, Sadewa explained the government will maintain a healthy, credible, and sustainable State Budget by optimising state revenues, improving the quality of spending, as well as prudently managing financing to maintain economic stability and accelerate national economic transformation.

According to him, confidence in the outlook is supported by strong economic fundamentals in the first quarter of 2026, including economic growth of 5.61 percent year-on-year, inflation at 3.08 percent, a continuing trade surplus, and foreign exchange reserves of US$144.9 billion, equivalent to 5.6 months of imports.

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Entering the second quarter, domestic economic activity continued to improve, supported by strong consumer confidence, rising public spending, and positive performance across several indicators, including motor vehicle sales, electricity usage, cement consumption, and manufacturing activity.

Sadewa said the government remains committed to maintain a responsive and anticipatory fiscal policy amid ongoing global geopolitical uncertainties and financial market volatility.

"The state budget not only functions as a shock absorber to maintain economic stability, but also as a development instrument to protect the public while encouraging stronger and higher-quality economic growth," he pointed out.

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Translator: Imamatul Silfia, Resinta Sulistiyandari

Editor: Fransiska Ninditya

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