Finance Ministry forecasts GDP growth at 5.4 percent

Finance Minister Suahasil Nazara has projected that Indonesia's gross domestic product (GDP) growth will reach 5.4 to 5.5 percent this year, aligning with the state budget plan. The minister announced this optimistic outlook during a press conference with the Financial System Stability Committee (KSSK) on Tuesday, describing the scenario as "strong."

The GDP target outlined in the 2026 state budget is 5.4 percent, while the average growth rate during the first half of the year was 5.45 percent. According to Suahasil, the economy and domestic activities are driving this growth, with the state budget acting as a buffer and providing continuous stimulus. Efforts to stabilize food and energy prices have also contributed to the economic stability.

The minister declined to provide further details, stating that the Statistics Indonesia (BPS) would release its third quarter GDP report on Thursday. The government anticipates strong growth in investments due to downstream industrial development. The GDP reports for the first half of the year indicate that gross fixed capital formation (GFCF) grew by 5.96 and 6.87 percent year-on-year in the first and second quarters, respectively.