Indonesia's newly appointed Finance Minister Purbaya Yudhi Sadewa speaks to journalists following his inauguration at the Presidential Palace in Jakarta, Indonesia, September 8, 2025. REUTERS/Willy Kurniawan

JAKARTA (Reuters) -Indonesia's finance minister said on Thursday he expected economic growth to rise to 6% thanks to a recent liquidity injection of 200 trillion rupiah ($12.09 billion), most of which had already been disbursed as loans by banks.

Southeast Asia's largest economy has faced a slow rebound since the COVID-19 pandemic, and though growth has been steady at around 5%, it has struggled to accelerate further and has failed to keep up with the expanding population.

Speaking at a conference in Jakarta, Purbaya Yudhi Sadewa said signs of the economic impact of last month's injection would hopefully be seen in the fourth quarter of this year, when growth would top 5.5% before rising to 6% next year.

A fast-growing economy and a favourable investment climate would lead investors to flock to Indonesia, Purbaya said.

"Foreign investors are not here to build Indonesia's economy ... They come here to enjoy Indonesia's growth," he said.

Purbaya transferred funds kept with the central bank to five banks - Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Tabungan Negara and Bank Syariah Indonesia - in September.

In his presentation, he said about 56% of the funds had already been disbursed as loans by the end of September.

A hard-talking economist, Purbaya was appointed just last month by President Prabowo Subianto to spur economic activity, replacing longtime minister Sri Mulyani Indrawati, known for her cautious handling of the economy through various crises.

Limited job creation has stirred social unrest against Prabowo, who won last year's election promising economic growth of up to 8%.

($1 = 16,540.0000 rupiah)

(Reporting by Stefanno Sulaiman; Editing by Susan Fenton and Joe Bavier)