Indonesia Sets Sights on Robust Economic Growth by 2026

Government Aims for Strong Economic Performance Amidst Global Challenges

Jakarta - The Indonesian government is aiming for substantial economic expansion, targeting a growth rate of between 5.2% and 5.8% in 2026, as announced by Finance Minister Sri Mulyani Indrawati.

This ambitious goal, detailed in the 2026 Macroeconomic Framework and Fiscal Policy Principles (KEM & PPKF), reflects an increase from the current year's objective of 5.2%.

“This targeted economic growth rate will serve as a strong foundation for the nation to achieve our broader goal of up to 8 percent growth in the coming years,” the Minister stated during the 18th Plenary Session of the House of Representatives (DPR) in Jakarta.

To facilitate this growth, the government will focus on key strategies. These include maintaining public purchasing power, restructuring the economy, developing natural resource downstreaming initiatives, improving the investment environment, and enhancing human resource quality.

“Fiscal policies in 2026 will remain focused on effectively supporting strategies to accelerate national economic growth, improve people's living standards, and reduce poverty,” Indrawati emphasized.

Indrawati also provided insights into key economic projections. The rupiah is anticipated to trade between Rp16,500 and Rp16,900 per US dollar in 2026, with national inflation targeted to range between 1.5% and 3.5%.

Acknowledging ongoing global tensions and economic slowdowns, the government anticipates Indonesian crude oil prices to fluctuate between US$60 and US$80 per barrel, with daily oil production projected to reach up to 605,000 barrels.

Furthermore, the government aims to enhance welfare indicators. The open unemployment rate is projected to decline to as low as 4.44%, an improvement from this year's target of 5.0-4.5%. The government is also targeting a reduction in the poverty rate to between 7.5% and 6.5%, with a goal of eliminating extreme poverty. Additionally, the Gini ratio is targeted at between 0.377 and 0.380, and the Human Capital Index is expected to reach 0.57.