Indonesia's Finance Minister Purbaya Yudhi Sadewa announced Thursday that he expects the nation's economic growth to accelerate to 6% following a massive 200 trillion rupiah ($12.09 billion) liquidity injection, with approximately 56% of the funds already disbursed as loans by banks by the end of September.
The hard-talking economist, recently appointed by President Prabowo Subianto to replace longtime minister Sri Mulyani Indrawati, said the economic impact of last month's injection should become visible in the fourth quarter of 2025, when growth is projected to exceed 5.5% before reaching the 6% target in 2026.
Southeast Asia's largest economy has struggled with a sluggish post-COVID-19 recovery, maintaining steady growth around 5% but failing to accelerate further or keep pace with its expanding population, prompting the government's bold intervention.
Purbaya transferred the funds from the central bank to five major state-owned banks—Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Tabungan Negara, and Bank Syariah Indonesia—emphasizing that rapid economic growth and a favorable investment climate would naturally attract foreign investors.
Speaking at a Jakarta conference, the finance minister stressed that foreign investors come to Indonesia not to build the economy but to benefit from its growth, underlining his vision for creating an environment where economic momentum becomes self-sustaining and appealing to international capital.
