The Organisation for Economic Co-operation and Development (OECD) has raised its outlook for Indonesia’s economy, projecting growth of 4.9% for both 2025 and 2026. This marks an improvement from its previous forecast, reflecting growing optimism about Indonesia’s economic resilience and recovery. The OECD attributed this upward revision to several positive factors. Monetary policy easing by Bank Indonesia and strong public investment are poised to stimulate economic activity. Furthermore, the OECD projects that inflation in Indonesia will rise from 1.9% in 2025 to 2.7% in 2026. This is due to the ongoing depreciation of the IDR, which is affecting domestic prices.
Overall, the OECD’s revised forecast signals renewed confidence in Indonesia’s growth trajectory, highlighting the strength of domestic policies and investments. However, it also serves as a reminder that external vulnerabilities must be carefully managed to maintain sustainable and inclusive economic progress.
