Indonesia central bank sees GDP growth at 5.33% in 2026

[JAKARTA] Indonesia’s central bank expects economic growth of 5.33 per cent next year, and if fiscal spending can be accelerated then growth could reach the government’s target of 5.4 per cent, governor Perry Warjiyo said on Wednesday (Nov 12).

Annual headline inflation for 2026 was seen at 2.62 per cent, while the rupiah was seen trading at an average of 16,430 per US dollar next year, he said.

“(If) the faster fiscal spending can be implemented, economic growth could reach 5.4 per cent,” Warjiyo told a parliamentary hearing on the central bank’s budget for next year.

The growth forecast is among the indicators used by Bank Indonesia to formulate its budget for next year.

The central bank also set a credit growth target of 8 per cent to 12 per cent for next year, compared with 8 per cent to 11 per cent this year.

President Prabowo Subianto has set a target of lifting economic growth to 8 per cent by the end of his five-year term in 2029. REUTERS