Jakarta Defies World Bank With 6% Growth Target as Ministry Readies Pro-Business Package

Byline Lead Reporter: Sarah Hutagaol | Editor: Fajar Widhiyanto

Photo Caption Deputy Coordinating Minister for Economic Affairs Drajad Hari Wibowo addresses the media in Jakarta on Thursday, Oct. 8, 2026. Photo: Investortrust/Sarah Hutagaol

JAKARTA, Investortrust.id — The Indonesian government is pushing back against cautious global forecasts, asserting that national economic growth can reach 6% by 2027 despite international institutions projecting a more modest trajectory.

Speaking on the sidelines of the Investor Daily Summit in Jakarta on Thursday, Oct. 8, 2026, Deputy Coordinating Minister for Economic Affairs Drajad Hari Wibowo dismissed recent projections from multilateral institutions, notably the World Bank, which forecast Southeast Asia's largest economy expanding by just 5.2%.

"The World Bank is entitled to make such predictions, but time will tell," Drajad said on Thursday. "We will see who proves right."

The dispute over headline growth targets highlights Jakarta's increasing willingness to diverge from the conservative fiscal models favored by international development lenders. Aiming for 6% growth is central to the administration's policy blueprint to break out of middle-income stagnation and fund ambitious domestic industrialization programs. By betting on an aggressive structural transition from short-term consumer subsidies to long-term productivity gains, economic planners are attempting to show that sovereign momentum can overcome external drag and tight global monetary conditions.

Pivoting From Aid to Productivity

Drajad explained that policymakers have already mapped out specific growth drivers, identifying the final three months of the current year as a foundational staging ground to accelerate economic velocity.

"We already have the pathway," Drajad noted. "We have identified the sources of growth, and the crucial phase lies in the fourth quarter of 2026. We are preparing measures to safeguard expansion during that period. As they say in English, time will tell."

The economic planner emphasized that lifting the pace of the economy will not depend exclusively on direct government spending. While fiscal interventions—such as wage subsidies and emergency food disbursements—have cushioned vulnerable households against swings in global commodity and energy markets, Drajad argued that prolonged reliance on relief programs cannot sustain long-term expansion.

"Stimulus is merely a temporary step, akin to extending a hand to those facing hardship," Drajad said. "What we want to encourage is for people to stand firmly on their own two feet. We must shift away from a culture where segments of society default to requesting assistance, and instead build a culture focused on genuine productivity through capital support and cooperative empowerment."

Regulatory Incentives on the Horizon

Alongside productivity overhauls, the coordinating ministry is assembling a series of policy adjustments designed to spur private capital investment and reassure commercial enterprises.

Drajad revealed that authorities are finalizing new regulatory frameworks and structural initiatives targeted at the private sector, which will be formally unveiled in coming phases.

"I do not have the clearance to disclose the details yet, but God willing, there will be several new initiatives that will be very welcome news for the business community," Drajad said. "Certain aspects pertain to regulatory adjustments, while others address broader economic transformation. My primary advice to corporate leaders is do not miss the train. Please remain actively engaged with the government so you do not fall behind."

The deputy minister firmly dismissed market speculation that the administration’s heightened enforcement of corporate compliance and good governance signals an anti-business posture. Instead, he maintained that legal consistency and rigorous oversight provide the predictable operating foundation required for businesses to thrive.

"The President is working to enforce compliance and good governance," Drajad said. "In some quarters, this has been misinterpreted as an administration that is less pro-business. That is entirely untrue. As long as enterprises operate strictly within the corridors of sound governance and legal compliance, they will capture even greater economic benefits from national growth."