The Government Strengthens Economic Policies, Experts Optimistic About the 2026 Growth Target of 5.6 Percent

Jakarta – The government is intensifying strategic policies to maintain stability and accelerate national economic growth ahead of 2026.

Amidst the dynamics and uncertainty of the global economy, the direction of Indonesia’s economic policies is increasingly coordinated, measured, and execution-oriented, thereby increasing business actors’ and public confidence in the prospects of the national economy.

Trimegah Sekuritas Indonesia Chief Economist Fakhrul Fulvian believes 2026 will be a crucial moment for the national economy, as fiscal and government policy coordination becomes increasingly solid, making the direction of economic policy clearer and more aligned than in previous years.

“Policy coordination is now increasingly measured and cohesive. This is a crucial asset for the government in maintaining the momentum of economic growth,” said Fakhrul in a dialogue with a private radio station in Jakarta.

Fakhrul believes the government’s active role is key to maintaining market confidence through support for the private sector and a commitment to risk-sharing to encourage sustainable economic recovery and growth.

Fakhrul assessed that Indonesia’s 2026 economic growth target of 5.4–5.6 percent is realistic, in line with government policies that are increasingly responsive, adaptive, and focused on strengthening the domestic economy.

“With increasingly targeted policies and strong government support, this growth target is still very possible to achieve,” he said.

He explained that the government and banking risk-sharing scheme is an important instrument for encouraging real-sector financing, supported by adequate banking liquidity and government policies to ensure continued credit growth.

“The government’s role in strengthening credit guarantees will make banks more confident in disbursing financing,” he explained.

Beyond the financial sector, accelerating state spending since the beginning of the year is considered strategic for maintaining economic activity, improving business cash flow, and stimulating economic activity.

The government is also accelerating payments, particularly in the construction and infrastructure sectors, to maintain business continuity and private sector confidence.

Fakhrul emphasized that 2026 will be a crucial phase for implementing economic policies that will have a real impact on the national economy. [-RWA]

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