Prabowo Targets Indonesia's Economic Growth 2026 Capai 5.4 Percent

JAKARTA - President Prabowo Subianto targets Indonesia's economic growth in 2026 to reach 5.4 percent or more, through strengthening sustainable fiscal management, directional economic transformation, and improving people's welfare.

"With the effectiveness of economic transformation and increasing people's welfare, economic growth in 2026 is targeted to reach 5.4 percent or more," he said in the submission of the 2026 State Budget Bill and Financial Notes in Senayan, Jakarta, Friday, August 15.

Prabowo said that job creation, investment increase, and financing breakthroughs do not merely rely on funds from the state budget.

"We continue to encourage energy and social assistance subsidies to be more targeted, based on single data on the national socio-economic economy. State Budget financing must be managed prudently and innovatively, debt, deficit, and debt ratios are maintained at a safe limit," he said.

He emphasized that medium and long-term fiscal sustainability is an important foundation for economic stability and improving people's welfare.

Therefore, he said, the government will continue to encourage the use of creative financing schemes by involving the private sector and Danantara's strategic role as the main driver of the economy.

Prabowo also underlined the importance of efficiency in state spending.

"We must protect every rupiah of people's money, don't mess with people's money. State spending must provide real benefits, create jobs, strengthen purchasing power, and improve public services," he said.

In the future, he conveyed that the State Revenue and Expenditure Budget (APBN) would be structured more proportionally, with a main focus on meeting the basic needs of the people, providing optimal public services, as well as encouraging economic activities that have added value and commercial impact, as well as the role of the Danantara and private involvement, including global partners, will be optimized.

Prabowo menambahkan, belanja negara, baik di tingkat pusat maupun daerah, harus terintegrasi dalam satu kerangka kebijakan yang utuh.

Menurutnya, transfer ke daerah bukan lagi satu-satunya cara pemerataan ekonomi, melainkan bagian dari desain pembangunan nasional yang lebih menyeluruh dan efisien.

Prabowo added that state spending, both at the central and regional levels, must be integrated into a complete policy framework.

According to him, transfers to regions are no longer the only way to equalize the economy, but rather part of a more comprehensive and efficient national development design.