Jakarta. Finance Minister Purbaya Yudhi Sadewa expressed optimism that Indonesia’s economy could soon grow above 6 percent, driven by the alignment of fiscal, monetary, and investment policies.

Speaking at the Investor Daily Summit (IDS) 2025 in Jakarta on Thursday, Purbaya said that achieving higher growth requires synergy among three main pillars: strong economic expansion, equitable development, and dynamic national stability.

“President Prabowo once said during his campaign that Indonesia could reach 8 percent growth. Many laughed. I did too, a little. But if we look at the history of countries that became advanced economies, all of them went through a period of double-digit growth lasting more than a decade,” Purbaya said.

He cited examples from countries such as Singapore, South Korea, China, Japan, Taiwan, the United States, and Germany, all of which experienced sustained high growth before achieving developed status.

Purbaya warned that Indonesia risks remaining stuck in the “middle-income trap” if it continues to grow at around 5 percent without transformative policies. To break through, he said, the country must shift from an agriculture-based to a manufacturing-driven economy, focusing on quality growth, innovation, and openness to the global community.

“We need to transform like those countries did. Rapid growth must be our main goal,” he said.

Purbaya highlighted the importance of balancing the three “growth engines”, which are fiscal, monetary, and investment, to sustain momentum above 6 percent.

He pointed to Susilo Bambang Yudhoyono’s administration as an example, noting that Indonesia’s economy then managed to grow above 6 percent even without large-scale infrastructure projects. “During SBY’s time, infrastructure development wasn’t massive, but growth still reached 6 percent and people were better off,” he said.

According to him, Indonesia’s per capita GDP tripled under SBY, partly thanks to rapid credit expansion of around 22 percent annually, showing that the financial sector strongly supported private sector growth.

In contrast, he noted, during President Joko Widodo’s era, despite major infrastructure investments, growth remained around 5 percent due to tight financial policies that constrained private sector expansion. “At that time, the banking sector practically stopped lending because financial policies were too restrictive. As a result, the real sector didn’t grow optimally,” Purbaya said.

Still, he remains confident that Indonesia can achieve 6 percent growth soon if fiscal and monetary policies are properly synchronized.

“If we combine the strengths, the private sector as the first growth engine and the government as the second, we can easily push growth beyond 6 percent,” he said optimistically.