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Purbaya says Indonesia can accelerate growth without extra budget

Jakarta (ANTARA) – Indonesian Finance Minister Purbaya Yudhi Sadewa stated that the government is capable of accelerating economic growth without increasing the budget burden.His statement was in response to national economic growth reaching 5.61 percent year-on-year in the first quarter of 2026.“We succeeded using the same budget, without additional funds, and were able to generate faster growth,” Purbaya told reporters on Wednesday.Indonesia’s average economic growth has hovered around 5 percent. It stood at 4.87 percent in the first quarter of 2025 and rose to 5.39 percent in the fourth quarter of last year.According to Purbaya, one key driver of the acceleration is the government’s fund injection into the national banking sector.He previously transferred around Rp300 trillion or approximately US$19.1 billion from the Budget Surplus held at Bank Indonesia to several banks.The policy is intended to strengthen financial intermediation and support the real economy through an invisible hand approach that stimulates activity without direct state intervention.“By shifting funds from the central bank to the banking system, alongside other programmes, we can push growth without additional capital,” he added.Based on first quarter economic performance Purbaya said he is optimistic growth could reach around 6 percent by the end of the year.He said recent economic trends suggest the government’s policy strategy is on track to steer the economy toward its target.“Looking at the results so far, the strategy appears to be delivering. It seems fairly well-calibrated and accurate. As other programs that have just begun start to take effect and their impact becomes visible, growth should accelerate further,” Purbaya said.