Airlangga Shares Strategies to Achieve Economic Target of 5.4 Percent in 2026
JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said that Indonesia's economic growth in 2026 is targeted at 5.4 percent, with the potential to increase to 5.6 percent.
"Economic growth is targeted at 5.4 percent in 2026 with a potential of up to 5.6 percent," he said in the Indonesia Economic Outlook 2026.
Airlangga said that the target would be supported by priority sectors, namely agriculture, manufacturing industry, digital economy, and energy.
He added that the implementation of President Prabowo Subianto's priority programs, such as Free Nutritious Meals, Red and White Village Cooperatives, and the 3 Million House Program, is expected to become a new source of growth that is able to absorb labor widely, accelerate productivity, and become a major driver of non-APBN financing, including through Danantara.
According to him, the financial sector plays a strategic role as an enabler of growth such as the capital market, as a financial window, is currently showing a positive and stable trend, with a rebound in recent times.
"The agenda for capital market reform includes increasing the number of shares in circulation in the public from 7.5 to 15 percent, so that the market becomes more liquid. Shareholder transparency, especially those below 5 percent, well this is very necessary so that openness rather than ownership becomes very clear," he explained.
Airlangga said that to increase liquidity, the investment limit for pension funds and insurance companies in the stock market was also increased from 10 percent to 20 percent, especially for quality and relatively safe stocks, such as those included in the LQ45 index.
On the other hand, he conveyed that in the midst of global challenges, world economic growth in 2026 is projected to slightly decline in the range of 2.9 to 3.1 percent, and global trade is also expected to stagnate and potentially fall by 2.4 percent.
However, Airlangga said Indonesia showed a relatively strong performance where among the G20 countries, Indonesia's economic growth in the fourth quarter ranked second after India which grew 7.4 percent, and on an annual basis (year on year), Indonesia's economy grew 5.11 percent.
"This is supported by strong household consumption of 4.98 percent. This reflects targeted economic stimulus, price stability, and increased mobility due to the big day of Nataru and people's economic activities," he explained.
Airlangga explained that for the first time, the momentum of a major religious day occurred consecutively in the fourth quarter of 2025 and the first quarter of 2026, which historically boosted higher economic growth.
"Because in the first quarter there is Eid al-Fitr, which is expected from our experience, at the time of Lebaran the highest growth also occurs. Therefore, we will continue to encourage growth in the first quarter of this year," he said.
He added that the fourth quarter of 2025 consumption of non-profit institutions serving households also grew by 5.13 percent, driven by increased social activities and disaster policy responses.
Meanwhile, investment grew significantly by 5.09 percent, and government capital spending jumped 44.2 percent in the fourth quarter of 2025.
Airlangga said that the government hopes that the spending will continue to be optimally realized in the first quarter of 2026.
"So this is what we hope for in the first quarter can also be disbursed by the Ministry of Finance. Then government spending on priority programs and economic stimulus plays a role in maintaining domestic demand and becoming a shock absorber against the risk of economic slowdown," he explained.