Finance Minister Sri Mulyani Indrawati conveyed this during a press conference on the 2026 Draft State Budget (APBN) and Financial Notes in Jakarta on Friday.
"We will look into sources of economic growth to pursue the 5.4 percent target," she said.
According to Indrawati, investment could play a key role in reaching the goal, noting that sovereign wealth fund Danantara has projected a favorable outlook for the country’s investment climate.
She added that the Finance Ministry intends to coordinate with the Ministry of Home Affairs to stimulate local economic growth, which she considers pivotal for strengthening the national economy.
To achieve this, her office plans to provide incentives to regional governments to enhance investment appeal, which in turn is expected to generate stronger growth supported by low inflation.
"We are determined to continue backing Danantara in improving Indonesia's business climate to attract more investors, including through fiscal incentives while maintaining fiscal prudence," Indrawati said.
She also emphasized the importance of optimizing exports, particularly through the newly finalized Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA), which is expected to help Indonesia diversify its export destinations.
In addition, the government aims to stimulate growth by leveraging artificial intelligence, expanding the digital economy, and fully capitalizing on the country’s mineral resources.
"In short, we expect exports and digitization to significantly contribute to our pursuit of 5.4 percent growth," she remarked.
The government's 2026 macroeconomic assumptions are as follows:
- Economic growth rate: 5.4 percent
- Inflation rate: 2.5 percent
- Exchange rate: Rp16,500 per US dollar
- 10-year government bond yield: 6.9 percent
- Indonesia crude oil price: US$70 per barrel
- Crude oil lifting: 610,000 barrels per day
- Natural gas lifting: 984,000 barrels of oil equivalent per day
Related news: Indonesia's economy grows above 5 pct amid global challenges: Prabowo
Translator: Imamatul S, Tegar Nurfitra
Editor: Anton Santoso
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