Purbaya: Indonesia to Keep Growth Momentum with Responsive Fiscal Policy

TANGERANG, Jakartaweekly.com — Finance Minister Purbaya Yudhi Sadewa said the government will continue to sustain economic growth through responsive fiscal policies.

Purbaya said such policies are essential to ensure that domestic demand remains the primary driver of Indonesia’s economic growth. To support policy formulation, the government continues to monitor a wide range of economic indicators on a regular basis.

“We monitor every variable that reflects current and future economic conditions and act swiftly to ensure that economic growth is not affected by negative market developments,” he said in Tangerang recently.

One of the indicators closely watched by the government, he said, is vehicle sales. Based on data presented at the Gaikindo Indonesia International Auto Show (GIIAS) 2026, passenger car sales rose 32.9 percent year-on-year (yoy) in June 2026.

Motorcycle sales, meanwhile, increased 1.1 percent (yoy). According to Purbaya, the figures reflect resilient household consumption and purchasing power despite continued global economic uncertainty.

Beyond vehicle sales, other indicators also point to stronger domestic economic activity.

He noted that domestic cement sales grew 13.5 percent (yoy) in June 2026, while electricity consumption increased 10.8 percent (yoy). Electricity demand rose across all major sectors, with household consumption growing 12.3 percent, business consumption 10.0 percent, and industrial consumption 6.5 percent.

Meanwhile, the retail consumption index continued to climb to 123.3, indicating that consumer spending remained robust. Purbaya said the broad-based improvement across these indicators reinforced the government’s confidence that Indonesia’s economic fundamentals remain strong.

The finance minister also highlighted the strategic role of the automotive industry as one of the country’s key drivers of economic growth.

According to him, the industry not only supports household consumption but also generates significant multiplier effects for the manufacturing sector, investment, and employment.

He therefore stressed the importance of synergy between government regulations and the readiness of industry players under the Association of Indonesian Automotive Industries (GAIKINDO) to strengthen the competitiveness of the national automotive industry.

Purbaya said such collaboration would be crucial to sustaining the industry’s growth momentum while accelerating the transition to low-emission vehicle technologies.

“The challenge ahead is no longer simply about encouraging electric vehicle adoption. It is about maximizing domestic value-added, attracting investment, creating jobs, and strengthening the competitiveness of our national industry,” he said.

The finance minister expressed confidence that closer collaboration between the government and industry players would enable Indonesia’s automotive sector to better meet domestic market demand, enhance its competitiveness in global markets, and make a greater contribution to the country’s economic growth.