Indonesia Targets 8% Economic Growth through Coordinated Policy Measures

Comprehensive Approach to Economic Stability

Finance Minister Purbaya Yudhi Sadewa emphasized that achieving 8% economic growth requires a comprehensive policy framework combining fiscal, monetary, and investment climate measures. Speaking at Universitas Airlangga, Purbaya highlighted that maintaining economic stability involves more than just managing interest rates - it also requires monitoring money supply growth and maintaining policy consistency.

Historical Context and Policy Lessons

Purbaya shared his observation from over 25 years of studying Indonesia's economy, noting that the country has previously achieved growth above 8% during periods when these three policy areas were effectively coordinated. The minister stressed that isolated policy measures are insufficient for achieving high growth targets, emphasizing the need for policy continuity and alignment across different government instruments.

Policy Coordination Challenges

The Finance Minister's statement underscores the complexity of achieving high economic growth in Indonesia. It requires not only appropriate monetary policy but also fiscal support and a conducive investment environment. Purbaya's remarks suggest that Indonesia's economic strategy must balance multiple factors to reach ambitious growth targets while maintaining macroeconomic stability.