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View all search resultsIMF expects Indonesia’s economy to grow 5.1% this year
Bank Indonesia, meanwhile, has projected Indonesia’s GDP to grow by around 5.3 percent year on year in 2026, supported by rising consumption and investment.
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A man walks on May 10, 2018, past the International Monetary Fund (IMF) logo at its headquarters in Washington, the United States. (Reuters/YURI GRIPAS)
T
he International Monetary Fund (IMF) has grown more upbeat on Indonesia’s economic prospects, forecasting 5.1 percent growth in 2026, according to its World Economic Outlook Update released on Monday.
The revised outlook marks an improvement from the fund’s October projection of 4.9 percent growth for this year, while also lifting its 2027 forecast for Indonesia from 5 percent to 5.1 percent.
The outlook echoes the IMF’s conclusions from its Article IV Consultation in November, which were reaffirmed in the fund’s statement on Wednesday. The IMF highlighted Indonesia’s inflation projection of 2.5 percent, the midpoint of the target range, a “contained” current account deficit and ample foreign exchange reserves, as basis of the economic resilience.
The upgrade comes as the IMF raised its global growth projection for 2026 to 3.3 percent, up from 3.1 percent in its October report, though it left the 2027 global growth outlook unchanged at 3.2 percent.
Read also: Kadin warns of slowing regional growth amid budget cuts
That said, the fund pointed to shocks from global trade tensions, economic uncertainty and financial market volatility as key threats in its latest assessment.
To achieve the long-term growth target of becoming an advanced economy, as envisioned in Golden Indonesia 2045, the IMF advised the implementation of data-driven monetary and exchange rate policies to safeguard stability, the gradual normalization of accommodative macroprudential measures as credit recovers, as well as acceleration of structural reforms to improve governance, trade integration and the investment climate.
