The Indonesian government is taking major steps to accelerate national economic growth, which has remained at around 5% for the past decade. Finance Minister Purbaya Yudhi Sadewa projects that Indonesia’s economic growth could reach 6% in 2026 with a more aggressive fiscal policy and efficient state cash management.
This optimism follows the government's injection of Rp200 trillion (approximately USD 12 billion) into the national banking system. The funds were allocated to five major state-owned lenders: Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Tabungan Negara (BTN) and Bank Syariah Indonesia (BSI).
Impact of Liquidity Injection Begins to Show
Purbaya revealed that around 56% of the Rp200 trillion had been disbursed as loans by the end of September 2025. He estimates that the positive effects of this policy will start to be seen in the fourth quarter of 2025, when economic growth is expected to rise to 5.5%, before reaching 6% in 2026.
“Foreign investors are not here to build Indonesia's economy ... They come here to enjoy Indonesia's growth,” Purbaya said at a conference in Jakarta on Thursday, October 9, 2025, as quoted by Reuters.
According to him, faster growth and a more conducive investment climate will increase global investor interest in the Indonesian market. However, the government emphasizes that its main focus remains strengthening the domestic economy and maintaining fiscal sustainability.
Liquidity Policy: Money Flowing, Economy Moving
Liquidity injections are a common monetary policy strategy in which financial authorities increase cash availability in the market to stimulate economic activity and maintain financial system stability.
In Indonesia’s case, the move involved shifting idle funds from Bank Indonesia (BI) to national banks so the capital can be immediately distributed as productive loans.
Since September 12, 2025, the government has placed Rp200 trillion of State Budget (APBN) funds in the Association of State-Owned Banks (Himbara). These funds were previously part of a budget surplus (SAL) held at BI, totaling around Rp450 trillion.
Purbaya stressed that this policy is part of cash management, not an extraordinary measure. However, he noted it will be carried out carefully to avoid disrupting national financial stability.
Two Economic Engines: The State Budget and the Private Sector
The new policy model implemented by the Ministry of Finance, according to Purbaya, will activate the two main engines of Indonesia’s economy. The first engine comes from the State Budget (APBN), through efficient and timely government spending. The second engine stems from the private sector, driven by household consumption and investment.
He emphasized that budget absorption by ministries and state institutions will be closely monitored. If spending realization is slow, the allocated funds will be redirected to programs that are more ready to be executed.
“I will take (the budget for) programs that are not progressing, and I will reallocate them to programs that are more prepared. So the approach is the same: budget efficiency. Not by cutting, but through timely and well-targeted spending with no leakages,” he stated during the Ministry of Finance Media Gathering in Bogor (October 10).
A combination of ample liquidity and fiscal discipline is expected to strengthen growth momentum, boost lending, and accelerate money circulation within the economy.
Economic Growth: From 5% Toward 6%
Since the end of the pandemic, Indonesia has managed to maintain growth at around 5%. However, this level is considered insufficient to keep up with population growth and the need for new job creation.
Recent data shows that Indonesia’s Gross Domestic Product (GDP) expanded by 5.12% in the second quarter of 2025, reflecting positive momentum despite a slowdown in the following quarter due to social unrest and external pressures.
Purbaya is optimistic that with the liquidity policy in place and improved budget governance, Indonesia’s economy will grow 5.5% throughout 2025 (year-on-year), and surpass 6% in 2026.
“Going forward, I believe growth will accelerate because we will constantly monitor how money and spending are moving within the system, while also debottlenecking all obstacles in the economy. (The year) 2026 will certainly be brighter than 2025,” he said at the Ministry of Finance Media Gathering in Bogor (October 10).
