Jakarta, February 14, 2026 – The Europe Today: Minister of Finance Purbaya Yudhi Sadewa has expressed strong confidence that Indonesia’s economy is entering a sustained period of healthy expansion projected to last seven to ten years, potentially continuing through 2033.
Speaking after attending the Indonesia Economic Outlook 2026 event at Wisma Danantara in Jakarta on Friday, Purbaya said the country’s near-term prospects remain positive, with the government targeting economic growth of up to six percent this year.
“Our prospects will be good this year. We will try to push economic growth to 6 percent. Over the next 10 years, we appear to be entering a healthy expansion phase. We can sustain that expansion through 2033,” he stated.
The minister noted that the anticipated expansion would also generate broader employment opportunities, reinforcing inclusive economic development. He stressed that maintaining prudent fiscal management would be central to sustaining this optimistic trajectory.
According to Purbaya, the government will pursue measured state spending while ensuring that the fiscal deficit-to-GDP ratio remains below the statutory threshold of three percent. At the same time, efforts will continue to stabilize and gradually reduce the national debt ratio.
“I think when the economy improves, our tax and customs revenues will also improve, allowing us to gradually bring down our debt,” he said.
During a panel discussion at the event, the minister outlined the cyclical nature of economic growth, explaining that economies typically move from expansion to recession before returning to expansion. He observed that expansion phases usually last between seven and ten years, while recessions tend to be shorter, averaging around one year.
Indonesia previously experienced a prolonged expansion period from 2009 to 2020 before entering recession due to the COVID-19 pandemic. Purbaya said the country is now firmly back on an expansion path.
He pointed to recent improvements in key economic indicators, noting that the Leading Economic Index (LEI), which forecasts economic direction six to twelve months ahead, had declined in earlier periods but has recently begun to trend upward. Meanwhile, the Coincident Economic Index (CEI), which reflects current economic conditions, has also shown signs of recovery.
The rising trajectory of both indices, he explained, signals that Indonesia is poised to enter a phase of accelerated growth.
With appropriate policy direction and disciplined economic management, Purbaya expressed optimism that the country could sustain its expansion momentum through 2033. He also reassured the public regarding the medium-term outlook.
“It appears we have a strong possibility of steering Indonesia’s economy toward a Golden Indonesia, not a bleak Indonesia,” he concluded.
