Bank Indonesia Seeks to Boost Indonesia's Economic Growth to 5.2 Percent in 2026

Bank Indonesia Governor Perry Warjiyo expressed optimism that Indonesia's economy can grow closer to 5.2 percent in 2026, a projection made by the Ministry of Finance, but emphasized that certain conditions need to be met. The central bank is advocating for policies that boost export performance, accelerate structural reform, increase domestic demand, and accelerate digital transformation. These measures include adopting export-enhancing policies, improving the investment and business climate, and promoting education, entrepreneurship, research, and innovation. Bank Indonesia is committed to working with the government to maintain economic stability and support growth.

Key Takeaways:

• Bank Indonesia forecasts Indonesia's economic growth to range between 4.7-5.5 percent in 2026, with a more conservative projection than the Ministry of Finance.
• The central bank believes growth can approach the upper end of the projection range if measures such as the Asta Cita program, tariff negotiations with the US, and trade partnerships with key countries are implemented.
• Policies aimed at boosting export performance include improving the business climate, fast-tracking downstream industrialization, and strengthening education, entrepreneurship, research, and innovation.
• Increasing domestic demand, both consumption and investment, to spur growth is also a key strategy, supported by fiscal stimulus, social programs, and budget allocations for capital expenditure and national priority programs.
• Bank Indonesia is committed to accelerating digital transformation to boost efficiency, productivity, and economic inclusion for public welfare.
• The central bank has already taken steps to support growth, including cutting interest rates twice, providing liquidity incentives, and advancing payment system digitalization.

Statistics:

• Bank Indonesia projects Indonesia's economic growth to range between 4.7-5.5 percent in 2026.
• The central bank's projection is more conservative than the Ministry of Finance's baseline scenario, which forecasts 5 percent growth.
• The government's Asta Cita program is a key measure aimed at boosting economic growth.
• Indonesia's trade partnerships with key countries such as China, ASEAN members, and India are expected to boost export performance.
• Bank Indonesia has cut interest rates twice and provided liquidity incentives worth Rp80 trillion to support growth.

Sources:

• Governor Perry Warjiyo, Bank Indonesia
• Antara News, July 4, 2025