Speaking at the launch of the Indonesia Economic Prospects report in Jakarta on Monday, Turk emphasized that strong macroeconomic fundamentals—such as low inflation, ample financial reserves, and consistent fiscal discipline—have helped bolster Indonesia’s economic resilience.
She assessed that these measures have supported the economy in weathering reduced government spending and mitigating the slowdown in investment
“Indonesia’s current economic performance reflects strong foundations and prudent policy responses,” she stated.
Turk noted that the benefits of recent growth have been felt most by lower-income groups. However, the middle class has not experienced the same gains, as reflected in slower consumption growth in that segment.
The World Bank projects Indonesia’s economy will grow at an average annual rate of 4.8 percent between 2025 and 2027.
She also highlighted initiatives like the launch of Danantara Indonesia and the government’s housing program as key drivers of future investment. The government’s target to construct three million housing units per year aligns with a broader strategy to improve public welfare.
With an annual public investment of US$3.8 billion, the housing program is expected to generate 2.3 million jobs and attract an estimated US$2.8 billion in private investment, while enhancing living standards nationwide.
However, Turk cautioned that risks remain, including challenges in global trade and volatility in commodity prices.
Nevertheless, she expressed optimism that the government’s continued focus on deregulation, trade reform, and digitalization would help mitigate those risks and support economic growth of up to 5.5 percent annually by 2027.
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Translator: Ahmad Muzdaffar Fauzan, Kuntum Khaira Riswan
Editor: M Razi Rahman
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