TEMPO.CO, Jakarta - Achieving 6 percent economic growth in 2026 may not be out of reach for Indonesia, according to economic analysts.
Ajib Hamdani, an economic policy expert from the Indonesian Employers Association (Apindo), believes that while the government’s official target in the 2026 State Budget (RAPBN) is 5.4 percent, hitting 6 percent is possible if key priorities are addressed.
Finance Minister Purbaya Yudhi Sadewa also shares optimism for 6 percent growth, citing improvements in fiscal and monetary policies as solid groundwork for the upcoming year.
Here’s a breakdown of Ajib’s six strategic prerequisites for accelerating economic growth in 2026.
1. High-Quality Job Creation
Ajib emphasizes that job creation must go beyond quantity and focus on quality. “Indonesia’s fundamental economic challenges include unemployment and the informal sector,” he said.
Investments should target sectors that absorb formal labor. The government must avoid turnkey or ready-made investment models for lower-level positions. Policies should enforce clear and consistent local labor force participation ratios.
The idea is simple: more quality jobs mean higher incomes, stronger domestic demand, and a more resilient economy.
2. Balanced Fiscal and Monetary Policies
2025 marked a transition in Indonesia’s fiscal approach, moving from strict stability to growth-oriented policies. Ajib notes that while President Prabowo Subianto’s fiscal style suits this shift, challenges remain.
Limited fiscal space, tax revenue shortfalls, and inefficient State-Owned Enterprises (SOEs) are issues that need attention. Monetary policy must also keep inflation in check, around 2.5 percent ±1 percent.
“The principle is clear: collect more, spend better,” Ajib said, underlining the importance of synchronized policies.
3. Cost Efficiency Across the Economy
Reducing business costs is another critical agenda. Ajib highlights the need for lowering compliance costs, providing more competitive financing options, and controlling energy, logistics, and labor expenses.
Efficient costs make Indonesian businesses more competitive domestically and internationally.
4. Strengthening Human Capital
Productivity and workforce quality are central to sustainable growth. Ajib suggests vocational education reform and skills upgrading, integration between education, industry, and business, and emphasis on digital literacy to adapt to a technology-driven economy.
“Wage increases must be matched with higher productivity and competitiveness,” Ajib stressed.
5. Empowering MSMEs in Supply Chains
Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Indonesia’s economy. Ajib recommends connecting MSMEs with SOEs and the private sector, offering fiscal incentives to strengthen competitiveness, and improving access to financing and global markets.
A strong MSME sector ensures more inclusive growth and deeper integration into global supply chains.
6. Laying the Foundation for Accelerated Growth
According to Ajib, these five prerequisites form the foundation for achieving 6 percent growth. “With current conditions, 6 percent is possible, but 5 to 5.4 percent is more realistic,” he said.
Finance Minister Purbaya Yudhi Sadewa echoed this optimism. Despite economic slowdown in the first nine months of 2025, he cited improvements in fiscal and monetary policy coordination as critical for 2026.
He added that the misalignment between Budget Surplus (SAL) placement and projections, often held at Bank Indonesia (BI), has been resolved.
“Going forward, with synchronized policies between the government and central bank, our economy will grow better than it is now,” Purbaya said on December 31, 2025.
ndonesia’s target for 2026 growth hinges on strategic job creation, efficient fiscal and monetary policies, cost reduction, human capital development, and MSME empowerment. With the right steps, 6 percent growth could move from ambition to reality.
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