Jakarta. Indonesia’s ambition to lift economic growth to the 6%–8% range cannot rely solely on the state budget, Deputy Finance Minister Suahasil Nazara said on Monday, underscoring the pivotal role of the private sector in accelerating national growth.

Suahasil said private businesses and households form the backbone of Indonesia’s economy, accounting for roughly 85% of total economic activity through corporate investment, household consumption, and export-import flows.

“Indonesia’s gross domestic product currently stands at around Rp 24,000 trillion, while the state budget is only about Rp 3,800 trillion, or roughly 14% of GDP. The rest is driven by private sector activity, public consumption, investment, and trade,” he said in an official statement.

He urged business leaders to deepen collaboration with the government to support sustainable growth, stressing that stronger synergy is essential to create new jobs and improve public welfare.

To back private sector expansion, the government has placed Rp 205 trillion in funds within the banking system to safeguard liquidity and lower banks’ cost of funds, allowing credit to be extended to businesses at more competitive rates.

The move also reflects the stabilizing role of the state budget in keeping inflation in check and fostering a conducive business environment.

“With stability maintained, we hope the business sector will be more confident and eager to expand,” Suahasil said.