BI: Indonesia's Economic Growth Is Projected To Increase To 5.9 Percent In 2027

Annual Meeting of Bank Indonesia (PTBI) 2025 (Bank Indonesia)

JAKARTA - The Governor of Bank Indonesia, Perry Warjiyo, expressed optimism that Indonesia's economy in the future would be better off with higher growth and resilience, while remaining aware of global uncertainty.

"Bank Indonesia predicts Indonesia's economic growth in 2025 to be in the range of 4.7 percent 5.5 percent and an increase higher in 2026 and 2027 in the range of 4.9 percent 5.7 percent and 5.1 percent 5.9 percent, respectively," he said in his statement, Sunday, November 30.

He added that this was supported by increased consumption and investment, as well as fairly good exports amid the slowdown in the world economy.

According to him, inflation will remain low in the target range of 2.5 percent plus minus 1 percent in 2026 and 2027 supported by consistency in monetary policy, fiscal policy, tight synergy in controlling inflation both at the center and in the regions, and strengthening the implementation of the National Food Security Program.

"External stability and financial system are maintained, accompanied by digitalization which continues to grow rapidly," he said.

In the future, Perry said that there are five global challenges that need to be observed and watched out for, namely the continuation of US tariff policies, slowing world economic growth, high government debt and interest rates for developed countries, high vulnerability and risk of the world's financial system, as well as the rise of cryptocurrency and stablecoins for the private sector.

He added that synergy is a prerequisite in strengthening the transformation of the national economy so that growth can be higher and more resilient.

Meanwhile, policy synergies need to be strengthened to face increasingly complex challenges, which include five important areas, namely strengthening macroeconomic and financial system stability; encouraging higher growth and resilience; increasing economic and financial market financing; accelerating the digitization of the national financial economy; and strengthening bilateral and regional economic cooperation.

Perry conveyed that the synergy of real sector transformation policies to increase capital, labor, and productivity is needed to encourage higher growth and resilience.

According to him, the real sector transformation policy is pursued both through industrial policies and structural reform policies, which complement each other.

"Industrial policies are directed to increase the added value of production from national priority sectors, including downstreaming, especially based on natural resources, technology industry, and labor-intensive industries," he explained.

Meanwhile, he added that structural policies are aimed at improving the investment climate, healthy business competition, infrastructure connectivity, and strengthening trade and investment policies, including through the Special Economic Zone (KEK) as growth centers.