The remarks followed the release of data by Statistics Indonesia (BPS), which showed gross domestic product (GDP) at constant prices reached Rp3,576.2 trillion in the April-June period, up from Rp3,396.6 trillion a year earlier.
"Growth in the second quarter was slightly lower than in the first quarter, but economic momentum remains strong," Juda said in Jakarta.
He said the Manufacturing Purchasing Managers' Index (PMI) remained in expansion territory, while imports of capital goods and raw materials also posted stronger performance.
According to Juda, those indicators signaled continued growth in production activity and investment, reinforcing the government's confidence that the economy could still achieve its 2026 growth target of 5.6-6.0 percent.
He added that stimulus measures planned for the second half of the year, including support for the manufacturing and automotive sectors, are expected to further strengthen economic activity.
Juda said optimism over the economic outlook was also supported by resilient household purchasing power, explaining that July 2026 deflation was driven by lower prices of certain commodities, including shallots and gold, rather than weakening demand.
The deputy finance minister said Indonesia's economic performance was also supported by a healthy and credible state budget.
He said continued growth in state revenue, state spending, and a well-managed fiscal deficit reflected a healthy and prudent state budget.
Disciplined fiscal management has also strengthened international investors' confidence in Indonesia, as reflected in the country's maintained sovereign credit ratings and strong demand for government financing instruments, he added.
"That means we are able to achieve high growth without sacrificing stability. Inflation remains under control, fiscal conditions remain healthy, and the economy continues to grow above 5 percent. This is the foundation of investors' confidence in Indonesia," Juda said.
Ahead of the presentation of the 2027 State Budget Financial Memorandum, Juda said the government would continue using the state budget as a key instrument to support economic growth while maintaining fiscal sustainability.
He added that fiscal policy next year would remain expansionary while keeping the budget deficit under tighter control.
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Translator: Imamatul Silfia, Martha Herlinawati Simanjuntak
Editor: Primayanti
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