Indonesia expects 2026 GDP growth of between 5.2%-5.8%

[JAKARTA] Indonesia’s government expects economic growth in 2026 to be between 5.2 per cent and 5.8 per cent, while the budget deficit is seen between 2.48 per cent and 2.53 per cent of GDP, finance minister Sri Mulyani Indrawati told parliament on Tuesday.

The forecasts, along with predictions on bond yields and the rupiah exchange rate, were revealed as the government outlined the basis of its 2026 budget. It will be the first budget prepared under President Prabowo Subianto, who took office in October.

The finance ministry has said the 2026 fiscal plan will support Prabowo’s priority programmes, including the flagship free meals programme for an estimated 83 million students and pregnant women.

In 2025, the GDP growth target was set at 5.2 per cent. Prabowo has pledged to lift growth to 8 per cent by the end of his term in 2029. The projected budget deficit of between 2.48 per cent and 2.53 per cent of GDP for 2026 compares with a planned deficit of 2.53 per cent of GDP this year and 2024’s deficit was 2.29 per cent of GDP. REUTERS