Jakarta — Fiscal and monetary policies, along with the role of Danantara, are considered the three main pillars of Indonesia’s economy in driving faster growth in 2026.
In its latest outlook, Danantara views fiscal policy as the instrument with the most tangible impact, as it is increasingly pro-growth and focused on removing administrative bottlenecks to accelerate state budget disbursement.
On the monetary side, Danantara projects that the impact of interest rate cuts implemented in 2025 will be more strongly felt in the following year. “Previous cuts—amounting to 125 basis points in 2025—should begin to have an impact on credit expansion over the next several quarters,” Danantara’s economics and research team wrote in its report.
The report also notes that demand for working capital loans is expected to recover in line with rising business activity and declining operational costs.
Danantara’s role as a domestic catalyst is also seen as crucial, both through the provision of seed capital by Danantara Investment Management (DIM) and the optimization of state-owned enterprise businesses by Danantara Asset Management (DAM). These measures are viewed as opening greater space for more sustainable investment going forward.
Danantara emphasized that demand for investment loans remains strong despite fluctuations in other sectors, as an investment-led model is considered the safest path for Indonesia to maintain higher GDP growth over the long term.
In line with this, the National Development Planning Agency (Bappenas) believes that the transformation of state spending should be directed toward high-impact programs such as Danantara and MBG.
Deputy for Macroeconomic Development Planning at Bappenas, Eka Chandra Buana, stated that state expenditure needs to be channeled toward programs with strong leverage effects.
“The transformation of state spending must be directed toward programs with high leverage effects, such as Danantara and MBG, so that fiscal spending is not merely consumptive but can also generate measurable economic and social impacts,” Eka concluded.
A similar view was expressed by Firmansyah, Professor at the Faculty of Economics and Business, Diponegoro University (FEB Undip), who assessed that Danantara’s main strength lies in long-term investment.
“Danantara’s greatest potential does not come from adding labor or short-term spending, but from increasing productivity and economic efficiency,” he said.
He emphasized that Danantara is designed as a strategic investment platform that channels funds into infrastructure, manufacturing, energy, and food sectors to strengthen the foundation of national economic growth. *
