Indonesia Sets Ambitious 6% Economic Growth Target for 2026

Government Confidence Amid Challenges

The Indonesian government is aiming for 6% economic growth in 2026, exceeding the current APBN target of 5.4%. Finance Minister Purbaya Yudhi Sadewa expressed his determination to achieve this challenging goal during the Ecoverse 2025 event in Jakarta ²

. Purbaya acknowledged the potential risks but emphasized that he is prepared to face consequences if the target is not met. He stated, "If there's no challenge, it's not interesting." The minister further elaborated on his vision for subsequent years, suggesting that the economy could approach 8% growth in the third or fourth year of their plan.

Debt Financing Progress and Challenges

Despite the ambitious growth targets, the government's debt financing efforts remain on track. According to Myrdal Gunarto, Global Market Economist at Maybank Indonesia, the government has successfully reached 77.94% of its Rp 731.5 trillion debt financing target by October 2025 ¹

. This achievement translates to Rp 570.1 trillion in realized debt financing. To meet the full-year target, the government must secure approximately Rp 80.7 trillion per month in November and December. Myrdal noted that while there are potential risks of a widening deficit, the current trajectory suggests that the government should be able to meet its target.

Economic Outlook and Policy Implications

The government's economic growth projections are backed by a series of policy measures aimed at stimulating economic activity. The Q4 2025 growth target is set to be above 5.5%, providing a strong foundation for the 6% target in 2026. The government's confidence is reflected in Purbaya's statement about pushing for higher growth rates in subsequent years. However, achieving these targets will require careful management of fiscal policy, particularly in terms of debt financing and deficit control.