Government Targets Economic Growth 2026 In Range 5.2 To 5.8 Percent

JAKARTA - The government targets Indonesia's economic growth in 2026 to be in the range of 5.2 percent to 5.8 percent.

This was conveyed in the Macroeconomic Framework and the Principles of Fiscal Policy (KEM-PPKF) 2026, which was read by the Minister of Finance Sri Mulyani Indrawati at the Plenary Session at the DPR, Tuesday, May 20.

Minister of Finance Sri Mulyani Indrawati will explain that in achieving economic growth in 2026, and in the midst of various global challenges, it is necessary to continue to work hard and increase collaboration and unity between the nation's components.

"This is necessary to achieve economic growth in 2026 which is assumed to be in the range of 5.2 percent to 5.8 percent," the DPR plenary meeting at the Parliament Complex, Tuesday, May 20.

In addition, Sri Mulyani said that inflation was maintained low, transformation and economic reforms were carried out consistently with the continuation and expansion of SDA downstreaming, including improving the investment climate and improving the quality of human resources.

According to him, this growth rate will be a strong foundation for growth of up to 8 percent in the next few years, supporting the achievement of the 2045 Advanced Indonesia vision.

He conveyed, taking into account the risks and uncertainties in the global financial market which are still high, the 10-year SBN Tenor interest rate is in the range of 6.6 percent 7.2 percent supported by attractive spreads and investors' trust in Indonesia's economic and financial sector stability that are well maintained.

"The interest of buying investors in the SBN market, plus direct foreign investment and maintained export performance will continue to be strong in creating stability in the Rupiah exchange rate against the US dollar, in the range of Rp. 16,500 Rp. 16,900. Meanwhile, inflation is controlled in the range of 1.5 percent 3.5 percent with various efforts both in terms of supply and demand," he said.

Sri Mulyani said that by observing the geopolitical tension that is currently still continuing and the pressure on the global economic activity side, the price of Indonesian crude oil is estimated at 60 US dollars 80 per barrel.

Then, oil lifting of 600,000'605,000 barrels per day and gas lifting of 953 1,017 thousand barrels of oil equivalent per day with support for accelerating investment plans, including the use of high technology to boost productivity.

He added, with these various backgrounds, fiscal policy continues to be effective in supporting the acceleration of national economic growth, improving welfare, including realizing a lower poverty rate.

"The poverty rate is targeted to fall to the range of 6.5 percent 7.5 percent of the 2025 target in the range of 7.0 percent 8.0 percent," he said.

Sri Mulyani said the open unemployment rate in the range was 4.44 percent 4.96 percent compared to the 2025 target at 4.5 percent 5.0 percent.

"The Gini ratio is targeted to continue to improve, in the range of 0.377'0.380 compared to the 2025 target in the range of 0.379'0.382. The Human Capital Index (IMM) is also targeted to improve to 0.57 from the 2025 target of 0.56," he concluded.