..three key roles of the State Budget: supporting economic growth, maintaining macroeconomic stability, and safeguarding fiscal credibility.
Jakarta (ANTARA) - Indonesia cannot rely solely on the State Budget to drive economic growth, as households and businesses play a major role in generating economic activity, Finance Minister Suahasil Nazara said.
Speaking at the Danantara Technology Innovation Investment Forum (DTIIF) 2026 in Jakarta on Monday, Suahasil said the State Budget accounts for only around 14 to 15 percent of Indonesia’s gross domestic product (GDP).
“If the State Budget accounts for 15 percent, who generates the remaining 85 percent? It is generated by society as a whole—households through their consumption and companies through their investments,” Suahasil said.
Given the significant contribution of economic activity beyond the government budget, he emphasized the need for a coordinated national strategy involving all economic actors.
“What our nation needs is the orchestration of the entire economy—coordinating all economic actors so that, collectively, we can maximize gross domestic product,” he said.
Suahasil added that the government must ensure its spending generates a substantial multiplier effect across the broader economy.
He outlined three key roles of the State Budget: supporting economic growth, maintaining macroeconomic stability, and safeguarding fiscal credibility.
Suahasil also highlighted Danantara’s complementary role as the government’s investment arm in supporting national development.
“When there are grand ideas or a major vision for Indonesia, two ‘hands’ are at work. The first is the State Budget, and the second is Danantara, acting as Indonesia’s investment arm. We must work together,” he said.
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Translator: Bayu Saputra, Yashinta Difa
Editor: M Razi Rahman
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