Indonesia finance minister sees growth near 8% by 2029

Indonesia’s Finance Minister Purbaya Yudhi Sadewa said on Tuesday the country’s economic growth could approach 8% by 2029 as the government seeks to boost public spending and private investment while maintaining fiscal discipline.

Purbaya Yudhi Sadewa. Photo: Kemenkeu.go.id

JAKARTA — Speaking at the Indonesia Economic Summit 2026 in Jakarta, he outlined a projected growth path starting at around 6% this year and rising gradually in the coming years.

“This year we are looking at 6%, next year 6.5%, then approaching 7%, and by 2029 nearing 8% — provided I am still in office,” Purbaya said.

Indonesia’s economy has grown at around 5% annually over the past decade, but recent data pointed to a strengthening recovery, he added.

The government will keep the budget deficit below the statutory ceiling of 3% of gross domestic product while providing stimulus to support growth.

“We are ensuring sufficient liquidity in the system while maintaining fiscal stability,” he said. “We are pursuing fiscal expansion but remain within the 3% deficit limit.”

Growth, he said, will be driven by a combination of state spending and private investment, supported by efforts to reduce regulatory bottlenecks.

A task force has been set up to help businesses resolve regulatory hurdles more quickly.

“I believe a year from now the business climate will be much improved,” he said.