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Indonesia to record 4.9 pct to 5.7 pct growth in 2026, BI estimates

Jakarta (ANTARA) – Bank Indonesia (BI) Governor Perry Warjiyo estimates Indonesia's economic growth in 2026 will be in the range of 4.9 percent to 5.7 percent.”Bank Indonesia continues to strengthen its policy mix through monetary, macroprudential, and payment system policies, which are closely aligned with government policies to maintain stability while supporting economic growth,” Perry said here on Wednesday, following BI's April board of governors meeting.According to him, economic growth needs to be continuously encouraged to maintain its positive performance amidst worsening global economic conditions and prospects.He refers to recent indicators showing that economic growth in the first quarter of 2026 increased due to support from domestic demand.Household consumption increased, supported by economic confidence and maintained income levels, as well as increased demand during the Eid holidays.Similarly, government spending increased due to the distribution of Eid allowances (THR), increases in social spending as well as various other incentives, including transfers to regions.Investment—particularly in construction—remained strong, driven primarily by accelerated investment related to various government priority programs.Going forward, government and BI policies are deemed necessary to continue strengthening amidst the declining global economic outlook.Various policy responses were strengthened to mitigate the impact of the global economic slowdown and stimulate sources of economic growth from domestic demand.”In this regard, priority government programs to absorb labor, increase domestic demand, and strengthen fiscal resilience continue to be implemented,” Perry noted.