The Indonesian government is taking significant steps to speed up national economic growth, which has remained around 5% over the past decade. Finance Minister Purbaya Yudhi Sadewa predicts that Indonesia’s economic growth could reach 6% in 2026 with a more aggressive fiscal policy and efficient management of the state’s money.
This optimism is as a result of the federal government’s injection of IDR 200 trillion (about $12 billion) into the country’s banking system. The funds went to 5 major state-owned lenders: Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Tabungan Negara (BTN) and Bank Syariah Indonesia (BSI).
The impact of the liquidity injection is beginning to develop into visible
Purbaya revealed that by the tip of September 2025, about 56% of the loans had been disbursed out of the P200 trillion. He estimates that the positive effects of this policy will begin to be visible within the fourth quarter of 2025, when economic growth is predicted to extend to five.5%, and in 2026 it can reach 6%.
“Foreign investors will not be here to construct the Indonesian economy… They come here to enjoy Indonesia’s growth,” Purbaya said at a conference in Jakarta on Thursday, October 9, 2025, as quoted by Reuters.
According to him, faster growth and a more favorable investment climate will increase the interest of worldwide investors within the Indonesian market. However, the federal government emphasizes that its essential goal stays strengthening the domestic economy and maintaining fiscal stability.
Liquidity policy: money flow, changing economy
Liquidity injections are a typical monetary policy strategy by which financial authorities increase the provision of money out there to stimulate economic activity and maintain economic system stability.
In Indonesia’s case, the move involved transferring unused funds from Bank Indonesia (BI) to domestic banks in order that capital could possibly be immediately distributed in the shape of productive loans.
As of September 12, 2025, the federal government has placed funds amounting to Rs 200 trillion from the general public budget (APBN) within the Association of State Banks (Himbara). These funds previously formed a part of the fiscal surplus (SAL) held within the BI, amounting to roughly 450 trillion rupiah.
Purbaya stressed that this policy is an element of money management and never an emergency measure. However, he stressed that this may be done fastidiously in order to not disturb the country’s financial stability.
Two economic engines: the state budget and the private sector
According to Purbayi, the brand new policy model implemented by the Ministry of Finance will launch two essential engines of the Indonesian economy. The first engine comes from the State Budget (APBN), through the efficient and timely expenditure of presidency funds. The second engine comes from the private sector, driven by household consumption and investment.
He emphasized that budget absorption by ministries and state institutions can be closely monitored. If the implementation of expenditure is slow, the allocated funds can be redirected to programs which can be more ready for implementation.
“I’ll take (the budget of) programs that will not be progressing and transfer them to programs which can be higher prepared. So the approach is identical: budget efficiency. Not through cuts, but through timely and well-targeted spending, without leakages,” he stated during a media meeting of the Ministry of Finance in Bogor (October 10).
The combination of high liquidity and financial discipline is predicted to strengthen growth dynamics, stimulate lending and speed up the circulation of cash within the economy.
Economic growth: 5% to six%
Since the tip of the pandemic, Indonesia has managed to take care of growth at around 5%. However, this level is taken into account insufficient to maintain up with population growth and the necessity to create recent jobs.
The latest data shows that Indonesia’s gross domestic product (GDP) grew by 5.12% within the second quarter of 2025, reflecting positive momentum despite a slowdown in the next quarter as a result of social unrest and external pressures.
Purbaya is optimistic that due to the implementation of liquidity policies and higher budget management, Indonesia’s economy will grow by 5.5% in all of 2025 (year-on-year), and in 2026 it can exceed 6%.
“I imagine that economic growth will speed up in the long run because we are going to continuously monitor the flow of cash and spending within the system while eliminating all obstacles within the economy. 2026 will definitely be brighter than 2025,” he said during a media meeting of the Ministry of Finance in Bogor (October 10).
