Jakarta. Finance Minister Purbaya Yudhi Sadewa expressed optimism on Sunday that Indonesia’s economy could expand by around 6 percent next year, saying government intervention will help accelerate growth without compromising fiscal responsibility.

The projection is significantly higher than Bank Indonesia’s official forecast, which targets 5.3 percent growth in 2026.

“I estimate the economy will grow even faster, maybe around six percent. If current policies continue to be implemented properly, we are moving in the right direction,” Purbaya said on the sidelines of the Run for Good Journalism event in Jakarta.

Purbaya expects fourth-quarter 2025 growth to come in at 5.6-5.7 percent, compared with 5.04 percent in the third quarter. The minister said the economy is showing signs of recovery after earlier concerns that momentum might weaken.

“At first it seemed growth would slow down, but now we are moving back toward a faster trajectory,” he said.

Government Defends Fiscal Prudence
Purbaya stressed that ongoing fiscal policies -- including the placement of government funds in the banking sector -- remain within safe and responsible limits.

“Our budget deficit is still safe and we continue to keep it below three percent. So people don’t need to worry that we will violate the principles of fiscal prudence,” he said.

He also rejected speculation that the policy to place Rp 200 trillion ($12 billion) in commercial banks involved printing new money. The funds, he said, represent temporary government deposits that remain under full state control.

“I distributed Rp 200 trillion into the banking system, and it is not new money. It is government savings that are being lent to banks, so it is safe,” Purbaya said.

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