Jakarta. Indonesia’s economy could expand by as much as 6% this year, surpassing the government’s official target of 5.4%, as stronger coordination between the public and private sectors begins to take effect, Finance Minister Purbaya Yudhi Sadewa said on Tuesday.

Speaking at the Indonesia Economic Summit in Jakarta, Purbaya said Indonesia’s growth over the past two decades had often been constrained by an imbalance between the roles of government and the private sector.

He noted that during the 2004–2014 period, private enterprise was relatively strong but was not matched by effective government support. In contrast, from 2014 to 2024, the government pushed aggressively on infrastructure development, while monetary conditions were less supportive of private-sector expansion.

“We are now trying to activate two growth engines at the same time — government and the private sector,” Purbaya said.

He added that sustained improvements in the investment climate would make higher growth rates achievable, describing investment as the most powerful driver of gross domestic product.

“Once that is in place, growing above 6% is not too difficult,” he said. “We are using all the economy’s growth engines to ensure we operate at full capacity.”

Purbaya’s optimism underpins the longer-term economic ambitions of President Prabowo Subianto, who has set a target of achieving 8% growth by 2029. To support that goal, the government is prioritizing efforts to cut bureaucratic complexity, which officials see as a major barrier to investment.

Beyond domestic reforms, Purbaya also stressed the importance of tighter coordination between fiscal and monetary policy, saying alignment with the central bank is essential to sustaining stability and growth.

“At the moment, our relationship with the central bank is working well,” he said.

Add as a preferred source on Google +