Indonesia’s economic momentum showed signs of moderation in August 2026, despite resilient 2Q26 GDP growth of 5.29%. Against this backdrop, several developments pointed to a gradual moderation in domestic demand and greater external-sector considerations, including rupiah volatility, elevated energy prices, and a wider current-account deficit. In response to these evolving conditions, Bank Indonesia maintained the policy rate at 5.75%, while fiscal policy continued to provide support. Looking ahead, structural reforms, investment, digitalisation, renewable energy, and effective policy execution are expected to remain important drivers of sustainable economic growth.
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