Bank Indonesia projecting 5.3% economic growth for next year

Bullish forecast: Workers preparing orders at a rice market in Jakarta. Indonesia’s inflation is expected to remain within the target range of 1.5% to 3.5% for the next two years, while loan growth is expected to reach 8% to 12% in 2026. — AFP

JAKARTA: Bank Indonesia (BI) has projected Indonesia’s gross domestic product (GDP) to grow by around 5.3% year-on-year in 2026, supported by rising consumption and investment.

BI governor Perry Warjiyo said during the 2025 BI annual meeting last Friday that the national economy remained “resilient,” maintaining stability with relatively high growth despite a series of global shocks.