Indonesia sets 6% growth goal for 2027 as investment takes central role
Investment is expected to grow by at least 7%, supported by fiscal policy, Danantara's strategic investments and private-sector participation.
Indonesia's 2027 state budget targets economic growth of 6%, Finance Minister Suahasil Nazara told investors in Thailand on 13 October 2026. He said investment was a key driver, with growth in investment expected to reach at least 7%.
Speaking at a meeting organised by Deutsche Bank, Suahasil said the government intended to support those targets through coordinated fiscal policy, strategic investments by Danantara and private-sector participation. It also wanted investment inflows to strengthen Indonesia's economic foundations over the long term.
Suahasil reaffirmed the government's commitment to fiscal discipline, including a budget deficit below 3% of gross domestic product. Fiscal policy needed to address economic pressures and protect the public while retaining capacity to handle future challenges, he said.
He identified fragmented global trade, volatile commodity prices and high global interest rates as risks to the domestic economy. Nevertheless, he said sound budget management, macroeconomic stability and fiscal-monetary policy coordination continued to support investor confidence.
Indonesia recorded inflation of 3.3% at the end of September 2026. Its manufacturing Purchasing Managers' Index reached 52.4 in September 2026, signalling expansion, while the trade balance again showed a surplus.
Suminto, the Finance Ministry's director general of Financing and Risk Management, said efforts to sustain investor confidence included regular communication on economic conditions and policy direction. He also outlined measures to maintain market integrity and strengthen domestic institutional and retail investor participation, which the government hoped would improve liquidity and resilience against global volatility.
