Bank Indonesia Maintains 2026 Growth Forecast at 4.9-5.7%

Tempo08-06

TEMPO.CO, Jakarta - Bank Indonesia (BI) has maintained its forecast for Indonesia's economic growth in 2026 at 4.9 to 5.7 percent, saying domestic demand is expected to remain the main driver of ...

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href=https://en.tempo.co/read/2116863/bank-indonesia-maintains-2026-growth-forecast-at-4-9-5-7><strong>Tempo</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>TEMPO.CO, Jakarta - Bank Indonesia (BI) has maintained its forecast for Indonesia's economic growth in 2026 at 4.9 to 5.7 percent, saying domestic demand is expected to remain the main driver of ...</p>\n\n<a href=\"https://en.tempo.co/read/2116863/bank-indonesia-maintains-2026-growth-forecast-at-4-9-5-7\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"JPAN","symbol_name":"Matthews Japan Active 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Investment Support GrowthBank Indonesia reported that household consumption grew 5.06 percent year-on-year in the second quarter, supported by school holidays and national religious holidays.Government spending rose 15.97 percent, driven by personnel expenditure, including the payment of the annual 13th-month salary for civil servants, as well as spending on goods and services for the government's Free Nutritious Meals (MBG) program.Spending by non-profit institutions serving households increased 6.93 percent, while investment expanded 6.87 percent, supported by both public and private investment, including higher investment in vehicles.Meanwhile, exports grew 4.13 percent, helped by stronger demand from Indonesia's major trading partners.Manufacturing, Trade Lead Economic ExpansionBI said the manufacturing, wholesale and retail trade, construction, and information and communication sectors remained the largest contributors to economic growth.The accommodation and food service sector also posted positive growth, supported by higher hotel occupancy rates and the expansion of the Free Nutritious Meals program to more beneficiaries.Among Indonesia's regions, Bali and Nusa Tenggara recorded the strongest economic growth in the second quarter, followed by Java, Sulawesi, Sumatra, Kalimantan, and Maluku and Papua.Bank Indonesia said it would continue coordinating its monetary, macroprudential, and payment system policies with the government to maintain economic stability while supporting sustainable growth.The central bank has kept its full-year 2026 economic growth projection unchanged at 4.9–5.7 percent, citing resilient domestic demand despite ongoing global economic uncertainties.Read: Indonesia's Policy Framework Weakens after Perry's ExitClick here to get the latest news updates from Tempo on Google 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