Indonesia’s economy is projected to remain resilient despite global economic headwinds, according to Finance Minister Purbaya Yudhi Sadewa. Speaking at the first Financial System Stability Committee (KSSK) press conference of 2026 on 27 January, he highlighted that Indonesia continues to show solid economic fundamentals while many countries face slowing growth. The Minister noted that economic growth in the fourth quarter of 2025 is expected to improve, supported by stronger domestic demand and rising confidence among businesses and consumers. This positive outlook contrasts with the broader global environment, where the IMF has revised global growth projections to 3.3% for 2026 amid weakening labor markets, softer demand, and declining exports in several advanced economies.

Looking ahead, the government forecasts Indonesia’s economic growth to reach 5.4% in 2026, up from an estimated 5.2% in 2025. One of the key drivers behind this optimism is robust domestic liquidity, reflected in a 9.6% year-on-year increase in money supply (M2) as of December 2025. This expansion has been largely supported by stronger bank lending and credit activity, signaling healthy spending and investment behavior across the economy. To sustain this momentum, the government is strengthening policy coordination within KSSK while accelerating investment downstreaming and improving the business climate through the Strategic Program Acceleration Task Force (SATGAS P2SP), aiming to attract both domestic and foreign investment.

Source:
https://rri.co.id/en/business/2138770/indonesia-s-economy-projected-to-reach-5-4-growth-in-2026