All Risks Under Control In 2025, Airlangga Is Optimistic That The 2026 Economy Is Positive

Coordinating Minister for the Economy Airlangga Hartarto (Photo: BI's youtube screenshot)

JAKARTA - The government is optimistic that the Indonesian economy in 2026 will continue to grow solidly, supported by various positive indicators that will begin to be seen at the end of 2025.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that various potential economic risks for next year have been managed successfully since this year. This belief is reflected in a number of supporting data, especially in terms of consumption, investment, government spending, and monetary conditions.

Airlangga said that public consumption is predicted to remain strong, as can be seen from the increase in the Mandiri Sharing Index (MSI) which in November 2025 reached 312.8, an increase compared to October which was at the level of 297.4.

"The fundamental projection and trend of positive economic growth in 2026. This is shown in the first increase in public consumption according to Mandiri Lending Index, the index was raised by 312 in November, an increase in its threshold at 300," he said at the 2025 Bank Indonesia Annual Meeting (PTBI), Friday, November 28.

In terms of investment, investment realization during January-September 2025 has reached IDR 1,434 trillion, growing 13.7 percent on an annual basis.

He said additional investment through BPI Danantara would also further strengthen the flow of incoming capital.

In addition, Airlangga said that the acceleration of government spending will continue until November 24, 2025, ministry/institutional spending has realized Rp1,109 trillion, with Rp213 trillion allocated for the President's priority program.

He added that in terms of monetary policy, Bank Indonesia had cut the benchmark interest rate by 125 basis points throughout 2025, so that the BI Rate fell to 4.75 percent.

"This encourages business credit and spending. We give applause to BI. We are grateful that inflation was recorded at 2.86 percent year-on-year in October, controlled within the national target range, and this is influenced by the consistency of the BI Interest rate policy and the government's fiscal incentive boost in carrying out inflation expectations," he said.

With these various achievements, Airlangga emphasized that almost all growth risks for 2026 have been absorbed this year, including risks related to the movement of interest rates, prices, and exchange rates.

"So for 2026, what we see is an upside risk, Mr. President (Prabowo Subianto), with a baseline at 5.4 percent in accordance with the APBN. So we hope and are optimistic that next year it will be better than this year," he explained.