Indonesia's Ministry of Finance published remarks by Finance Minister Purbaya Yudhi Sadewa arguing that Indonesia’s near-term economic outlook remains supported by domestic conditions and that low inflation leaves scope to push growth higher without prompting a sharp rise in policy rates. The minister said global factors are not the main driver of Indonesia’s performance because around 90 percent of growth is supported by domestic demand, with global contributions around 10–20 percent. He cited inflation of around 2.9 percent, core inflation of around 2.3 percent, and an estimate of about 1.5 percent when excluding gold prices, describing demand pressures as contained. Recent quarterly growth was described as running at around 5.0–5.4 percent, with the government planning to support activity through a “debottlenecking” approach to improve the investment climate, alongside efforts to optimise tax and customs revenues and control the budget deficit.
Ministry of Finance (Indonesia) 2026-01-27
Indonesia's Ministry of Finance says low inflation and domestic-demand-led growth leave room to accelerate the economy
Indonesia's Finance Minister Purbaya Yudhi Sadewa highlighted that the economic outlook is bolstered by domestic demand, with low inflation allowing growth without significant policy rate increases. Domestic factors account for about 90% of growth, with inflation at 2.9% and core inflation at 2.3%, while the government aims to enhance investment and optimize fiscal measures.