The Great Institute research firm projects that Indonesia's economy could reach a growth rate of 5.3% to 5.6% in 2026, surpassing the government’s official budget assumption of 5.4%. To achieve this optimistic target, economists emphasize that the nation must pivot its focus inward as global trade fragmentation and normalizing commodity prices limit the contribution of exports. The success of this economic trajectory hinges on three critical pillars: bolstering domestic consumption through targeted fiscal stimuli for the middle class, ensuring more productive and timely government spending, and accelerating comprehensive labor market reforms to enhance industrial demand and workforce skills.

For industry stakeholders and association members, this outlook signals a shift toward a more domestic-led growth model. The government’s commitment is further echoed by the Ministry of Finance, which envisions potential growth reaching up to 6% through better synchronization of fiscal and monetary policies. By prioritizing structural reforms and maintaining public purchasing power, Indonesia aims to create a more resilient economic environment. Looking ahead to 2026, the synergy between the private sector and the government’s "frontloading" spending strategy is expected to be the primary engine driving national productivity and long-term economic stability.

Source
https://www.kabarbisnis.com/read/28133542/tiga-faktor-pendorong-pertumbuhan-ekonomi-capai-5-6-