Challenges and Opportunities for Indonesia's Economic Growth in 2026

Indonesia’s economic growth in 2026 faces numerous challenges and opportunities. The government’s expectations remain high despite forecasts from various analytical agencies. Indonesia’s Finance Minister remains optimistic that growth could reach 6% due to several effective government measures. Meanwhile, some think tanks, such as CORE Indonesia, forecast a more conservative outlook of 4.9-5.1%, and the World Bank estimates growth at 5%. The main issues on the agenda are the economy’s response to external shocks and internal structural challenges. Experts like Raden Pardede advise focusing on removing bottlenecks and stimulating private investment, while the government continues to enhance the country’s resilience to economic shocks. Liquidity issues, improving business conditions, and fostering private investments are still pertinent. Private sector involvement and forming a more transparent regulatory environment will help Indonesia escape the ‘middle-income trap’ and achieve high economic development levels.