Indonesia Central Bank Sees GDP Growth at 5.33% in 2026

MACROECONOMICS - JAKARTA. Indonesia's central bank expects economic growth of 5.33% next year, and if fiscal spending can be accelerated then growth could reach the government's target of 5.4%, Governor Perry Warjiyo said on Wednesday.

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

"(If) the faster fiscal spending can be implemented, economic growth could reach 5.4%," 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.

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Bank Indonesia also set a credit growth target of 8% to 12% for next year, compared with 8% to 11% this year.

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