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View all search resultsPurbaya forecasts high GDP growth this year
The finance minister said the full year GDP growth this year was projected to hover between 5.6 and 6 percent despite the likelihood of a slowdown in the second quarter.
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Financial Services Authority (OJK) chief Friderica Widyasari Dewi (left), Finance Minister Purbaya Yudhi Sadewa (second-left), interim Bank Indonesia (BI) governor Destry Damayanti (second right) and Indonesian Deposit Insurance Corporation (LPS) chairman Anggto Abimanyu pose for a photo in a press conference following the conclusion of Financial System Stability Committee (KSSK) meeting in Jakarta on Aug. 3, 2026. (JP/Deni Ghifari)
T
he government has projected that gross domestic product growth will reach a high level this year on the back of a set of policies, namely flooding the banks with liquidity, government spending and a consumer stimulus.
Finance Minister Purbaya Yudhi Sadewa said the full-year GDP growth this year was projected to hover between 5.6 and 6 percent despite the likelihood of a slowdown in the second quarter that he forecast would be “not far from 5.4 percent”.
“But I’m sure that the second half growth will be better because we will firmly coordinate with the central bank to ensure that all engines of growth are functioning,” said Purbaya on Monday.
The coordination with Bank Indonesia (BI) included “ensuring that liquidity in the financial system is adequate” to accommodate higher growth, said the minister in a press conference held after the conclusion of the Financial System Stability Committee (KSSK) meeting.
Since he was first installed as the chief treasurer last September, Purbaya has been of the opinion that the key to higher growth is providing more liquidity, to the extent that he moved hundreds of trillions of rupiah of the state’s excess cash, typically lodged with BI, to deposit accounts in state-owned banks.
Purbaya separately doubled down on Tuesday, saying that he would add more on top of the Rp 370 trillion (US$20.5 billion) currently deposited “until the amount is adequate in the economy”.
Loan growth has indeed been trending upward since the move was taken and GDP growth in the first quarter reached an unexpectedly high level of 5.61 percent, although no analysis has proven a direct correlation between the two.
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