Minister Suahasil Sets State Budget to Boost Investment

TEMPO.CO, Jakarta - Finance Minister Suahasil Nazara is preparing Indonesia’s State Budget (APBN) to boost investment and expand economic capacity. He said that to achieve 6 percent economic growth by 2027, investment must grow by about 7 percent.

“This represents a massive undertaking. Therefore, various elements involved in our development must create synergy and work together,” said Suahasil at the ANTARA Business Forum in Jakarta on Wednesday, September 23.

As ANTARA reported, the finance minister said economic growth is not determined solely by government spending. APBN should be allocated to strategic areas that can generate a broader economic impact, such as supporting household consumption, investment, and exports.

Investment growth was recorded at 6.87 percent in the first semester of 2026. Although this figure reflects positive progress, increased investment is necessary to achieve higher economic growth.

Suahasil said that, within that framework, APBN plays the role of a fiscal enabler. Fiscal policy supports priority development activities and encourages the business sector and investment.

This role is fulfilled through targeted spending, improved spending quality, and providing tax incentives in areas that benefit the economy. “APBN must certainly continue to serve as a fiscal enabler. When we spend, our spending acts like those points of reflection—those acupuncture points,” he said.

“When we levy or collect taxes, we collect them from those who are truly generating returns. However, on the other hand, there are tax incentives; APBN can also provide tax incentives,” he added.

In addition to APBN, the government is promoting Danantara's role as an investment catalyst to accelerate investment. Danantara is expected to combine state capabilities—leveraging state-owned enterprises—with the private sector role to support strategic investments.

The private sector continues to be a driving force of growth through investment, business development, and economic activity generation.

The collaboration between APBN, Danantara, and the private sector focuses on supporting priority programs, such as energy and food security, natural resource downstreaming, and industrialization.

Read: Suahasil Projects Tax Incentives at Rp576.4 Trillion in 2026