JAKARTA - Bank Indonesia (BI) emphasized the importance of maintaining the momentum of national economic growth amid the ongoing conflict in the Middle East.
BI Governor Perry Warjiyo said that Indonesia's economic growth in the first quarter of 2026 showed an increase supported by strong domestic demand.
He added that household consumption was recorded to have increased, driven by an increase in demand during the National Religious Great Day (HBKN) celebrations, and supported by improvements in people's income through the distribution of Eid Al-Fitr Allowance (THR), government social assistance, and various other incentives.
On the other hand, he added that investment is also expected to continue to grow positively, especially due to the acceleration of government spending, including through the Red and White Village/Neighborhood Cooperative (KDKMP) program and Danantara investment.
"In the future, the impact of the worsening global economy and financial markets due to the Middle East war needs to be anticipated and responded to appropriately to maintain the momentum of national economic growth," he said in a press conference, Tuesday, March 17, 2026.
For this reason, Perry said that Bank Indonesia together with the government and other stakeholders continues to strengthen policy synergies to maintain domestic demand and maintain economic growth in the range of 4.9 to 5.7 percent.
"The confidence of economic actors, both households and the business world, continues to be maintained so that it can continue to encourage household consumption and investment," he said.
Perry said the government also continued various strategic programs that had a major impact on economic growth and employment absorption, while still paying attention to fiscal sustainability.
"Bank Indonesia will continue to strengthen the policy mix through monetary, macroprudential, and payment system policies that are closely in sync with Government policies to maintain stability while supporting economic growth," he said.
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