Indonesia's Economic Growth Projected to Reach Up to 6% in 2026 Amid Government Stimulus
The Financial System Stability Committee (KSSK) of Indonesia has projected the country's economy to grow between 5.6% and 6.0% year-on-year for 2026. This growth is expected to be driven by strengthened policy coordination, anticipated government stimulus, and robust fiscal performance. During a press conference, Minister of Finance and KSSK Chair Purbaya Yudhi Sadewa noted that while there was a slight moderation in economic growth in the second quarter of 2026, strong momentum is anticipated to resume in the second half of the year. The government plans to introduce targeted incentives to bolster domestic demand, including a forthcoming stimulus for electric cars and motorbikes. The growth outlook is further supported by solid state budget execution, with total state expenditure expanding by 17.8% year-on-year. 
