Tangerang. Indonesia’s target of achieving 6% economic growth in 2027 will be difficult to reach amid persistent global uncertainty and domestic economic challenges, economists said on Tuesday.

Center of Reform on Economics (CORE) Indonesia economist Hendri Saparini said the government’s target appeared overly optimistic, given that the Indonesian economy grew by 5.45% in the first half of 2026.

“Under current global conditions, and more importantly given the domestic problems that we need to fix and correct, [the target will be challenging],” Hendri said during a discussion at the B-Universe Media Holdings office in Tangerang, Banten.

She said the government needed to clearly identify the sources of growth required to push the economy to 6%, particularly because Indonesia’s economic structure remains heavily reliant on domestic activity.

“Indonesia is essentially a ‘traditional economy,’ with 75% of our economy driven by domestic activity. The question is how we can leverage this domestic market to reach 6%,” Hendri said.

She also urged the government to ensure that every allocation in the state budget generates a greater economic impact.

Hendri said the government could continue implementing its priority programs, including the Free Nutritious Meals program, but their execution should be improved to ensure that substantial public spending generates a stronger multiplier effect.

She said the program’s sizable budget, which had already absorbed around Rp 100 trillion ($5.6 billion) in the first half of 2026, should be used to generate new economic activity directly linked to the initiative, including by creating new businesses and developing the agricultural sector.

Echoing Hendri’s concerns, Center for Strategic and International Studies (CSIS) researcher Yose Rizal Damuri said the key issue with state spending was not simply the size of the budget but how the government allocated it.

Yose said the state budget could serve as an important instrument for stimulating economic growth, particularly when global economic conditions remain unfavorable.

“The state budget can be one of the tools for driving Indonesia’s economy, but it needs to be allocated appropriately,” Yose said at the same event.

He also questioned the amount of funding required for the government’s free meal program, arguing that its scale should reflect the actual needs of its intended beneficiaries.

“Do all Indonesian children really need free meals, requiring us to spend hundreds of trillions of rupiah and allocate such substantial resources to address this problem?” he said.

“According to national census data, the proportion of families or individuals who have experienced difficulties obtaining food is very small -- below 10%, even when using more flexible measurements,” Yose added.

He argued that the program should therefore not be implemented universally but instead adopt a more targeted approach to reach those most in need.

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