January 4, 2026 | 09:08 pm
TEMPO.CO, Jakarta - Head Economist of PT Bank Central Asia (BCA), David Sumual, believes extra efforts are required to achieve 6 percent economic growth for Indonesia this year.
"To achieve 6 percent economic growth, investments must improve from the current 30 percent of GDP (gross domestic product) to about 40 percent of GDP," said David when contacted on Sunday, January 4, 2026.
Based on Statistics Indonesia (BPS) data, gross fixed capital formation made up 29.09 percent of the GDP in the third quarter of 2025, reaching Rp6,060 trillion, with 5.04 percent economic growth reported.
David's statement came against the backdrop of Finance Minister Purbaya Yudhi Sadewa's confidence that Indonesia's economic growth will reach 6 percent this year.
According to David, efficiency and productivity must be ramped up for the economy to reach 6 percent growth. He mentioned the Incremental Capital Output Ratio (ICOR), which indicates investment efficiency, needs to be reduced from around 6 to at least 4.
To bolster investment and productivity, meanwhile, structural obstacles—including licensing, skilled workers availability, and bureaucracy—must be overcome. "Government spending must also be accelerated and strengthened from the first quarter," said David.
Purbaya's economic growth projection exceeds the government's target outlined in the 2026 State Budget of 5.4 percent. The minister said that in order to achieve 6 percent growth, the government will accelerate spending at the beginning of the year.
Purbaya mentioned that the government continues to synchronize policies between fiscal and monetary together with Bank Indonesia. "In 2026, the growth should be 6 percent, as I said before, it's not too difficult to achieve," he said in a press conference at the Ministry of Finance office in Jakarta, on Wednesday, December 31, 2025.
Ilona Estherina contributed to the writing of this article
Read: Indonesian Think Tank Rings Alarm for Sluggish Economic Growth in 2026
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