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View all search resultsIndonesia to maintain 5% growth to 2027 on policy support: OECD outlook
The OECD assessment sees Indonesia’s inflation declining to 1.9 percent this year, and then picking up to 3.1 percent and 3.2 percent in successive years.
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Fluffy white clouds hang in a bright blue sky above South Jakarta on March 3, 2023. (JP/Deni Ghifari)
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ndonesia’s economy is expected to grow at a rate of 5 percent this year and next, supported by resilient domestic demand, improving financial conditions and a moderately expansionary fiscal stance, according to the latest assessment from the Organisation for Economic Co-operation and Development (OECD).
“Low inflation and easing financial conditions will spur private consumption and investment. However, slowing export growth amid rising global trade frictions is expected to weigh on activity,” states the OECD Economic Outlook, published on Tuesday.
The analysis projects a slight increase in GDP growth to 5.1 percent in 2027, which is in line with recent growth rates.
GDP expanded 5.04 percent year-on-year (yoy) in the third quarter of 2025, driven by solid household spending and a positive contribution from net exports.
Read also: Exports help keep GDP growth above 5% in third quarter
The intergovernmental forum sees Indonesia’s inflation in 2025 declining to 1.9 percent, at the lower end of Bank Indonesia’s target range of 1.5 to 3.5 percent, “on the back of limited demand pressures and low energy prices”, before rising to 3.1 percent in 2026 and 3.2 percent in 2027.
Headline inflation slowed to 2.72 percent in November from 2.86 percent in October after averaging just 0.6 percent in the first quarter, with the increase attributed to the government’s temporary electricity discount ending.
