Indonesia Economic Outlook 2026 – Suboptimal Quality of 5% Growth

Indonesia’s economy is expected to maintain steady momentum through 2025–2026, supported by a stronger-than-anticipated rebound in the second quarter, firmer manufacturing activity, and resilient household spending boosted by seasonal holidays. Inflation has edged up but remains within the central bank’s comfort zone, while investment continues to accelerate, driven mainly by robust domestic capital. At the same time, Indonesia’s trade position has strengthened further, with a sharply wider surplus reflecting the divergence between rising exports and moderating imports.

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