Indonesia's Ministry of Finance set out the government’s early-2026 economic policy priorities, centred on accelerating state spending, improving the investment climate, and tightening coordination with the central bank to keep market liquidity balanced so fiscal and monetary policy operate in the same direction. The finance minister said measures taken since late 2025 had helped reverse an economic slowdown evident in August-September, which the government viewed as a potential risk to social and political stability if left unaddressed. The package includes establishing a task force to accelerate implementation and remove bottlenecks to investment in order to support the real sector, alongside consideration of subsidies or incentives where warranted by conditions. Policy effectiveness had previously been constrained by less synchronised monetary responses, but coordination with the central bank has since been strengthened and an agreed approach reached on improving the system to better align the fiscal-monetary mix.

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