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RI’s economic growth well-maintained despite global uncertainty: BI | hacked by trenggalek6etar
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RI’s economic growth well-maintained despite global uncertainty: BI

Jakarta (ANTARA) – Indonesia's economic growth remains well-maintained and needs further support to sustain momentum amid a weak global outlook and persistent financial-market uncertainty, Bank Indonesia said.“Going forward, growth is expected to remain strong, supported by government stimulus programs and sustained confidence among economic actors,” BI Acting Governor Destry Damayanti said during a press conference following the BI Board of Governors (RDG) meeting here on Wednesday.Indonesia's economy recorded a growth of 5.29 percent year-on-year (yoy) in the second quarter of 2026, following a 5.61 percent growth in the preceding quarter.Destry explained that the solid growth was primarily supported by fiscal stimulus, which spurred government consumption and investment.Government spending was driven by civil servant operational expenses, including the 13th-month salary payment, as well as goods and services procurement for the free nutritious meals (MBG) program.Meanwhile, household consumption and export performance remained stable, though BI emphasized the need to continuously support both sectors to further solidify the national economic structure.For the full year of 2026, the central bank projects Indonesia's economic growth to land in the range of 4.9 percent to 5.7 percent.The positive domestic trajectory comes against a difficult international backdrop.Bank Indonesia forecasts global economic growth to stall around 3 percent in 2026, dragged down by ongoing conflict in the Middle East, rising commodity prices, and sticky global inflation expected to hover near 4.5 percent.”Global economic growth in 2026 will not be strong,” Destry warned, pointing to tight monetary conditions abroad.The US Federal Reserve is expected to raise the Fed Funds Rate in the fourth quarter of 2026, keeping US Treasury yields elevated and bolstering the US dollar index (DXY).These external pressures have limited capital flows to emerging markets, prompting Bank Indonesia to pledge targeted monetary, macroprudential, and payment system adjustments to protect external resilience while keeping domestic expansion on track.