Jakarta (ANTARA) – Bank Indonesia (BI) expects the country's economic growth to reach the upper end of its projected 5.1-5.9 percent range in 2027, supported by strong domestic demand.Speaking at a working meeting with House of Representatives Commission XI in Jakarta on Wednesday, BI Governor Perry Warjiyo said growth next year would also be supported by efforts to boost investment and improve export performance.The outlook is in line with an expected improvement in the global economy, with growth projected to rise from 3 percent in 2026 to 3.1 percent in 2027.Perry said three key factors underpin the central bank's optimism.The first is prudent fiscal policy, with a low and controlled budget deficit alongside more efficient, productive, and welfare-oriented spending.”Pro-growth and pro-welfare policies will support economic growth,” he said.The second factor is the implementation of national priority programs, including food and energy security, as well as natural resource downstreaming and industrialization.The third is stronger coordination between BI and the government to support sustainable economic growth.While monetary policy will remain focused on maintaining stability, BI will continue optimizing macroprudential policies and the payment system to support economic growth.To support growth, BI has prepared five measures through its macroprudential and payment system policies.The first is purchasing Government Securities (SBN) in the secondary market to strengthen fiscal and monetary coordination. As of June 9, BI had purchased Rp156.5 trillion (around US$8.7 billion) worth of SBN after acquiring Rp332.14 trillion throughout 2025.The second is increasing Macroprudential Liquidity Incentives (KLM) by lowering the minimum reserve requirement from 9 percent to 3.5 percent to encourage lending to government priority sectors. KLM realization reached Rp424.7 trillion as of the first week of May.”If banks channel credit to these priority sectors, we will provide liquidity incentives. We also encourage banks to improve efficiency so lending rates can be lower,” Perry said.The third measure involves easing macroprudential instruments and accelerating lending through the Indonesian Intermediation Acceleration (Pinisi) program in cooperation with the Financial Services Authority (OJK), ministries, banks, and businesses.The fourth is accelerating payment system digitalization to improve productivity, efficiency, and strengthen the people's economy.The effort includes expanding QRIS (Quick Response Code Indonesian Standard) usage, government transaction digitalization, cross-border QRIS connectivity, Local Currency Transactions (LCT), and the development of micro digital entrepreneurship through the Indonesian Digital Innovation Center (PIDI).”We will continue to expand QRIS. After Japan, China, and South Korea, we hope to expand it to Saudi Arabia for Umrah and Hajj pilgrims, as well as to India for Indian tourists,” Perry said.The fifth measure is expanding support for MSMEs and inclusive finance, both conventional and sharia-based, through BI's 46 regional offices.Programs include the development of wastra (traditional textiles), coffee commodities, and stronger economic self-reliance among Islamic boarding schools.