January 14, 2026 | 08:35 pm
TEMPO.CO, Jakarta - Indonesia's economic growth is projected to be stuck within the 5 percent range while facing pressure on quality growth in 2026. The assessment was outlined by the Indonesian Business Council in its IBC Business Outlook 2026 report titled Inflection: Breaking the Growth Plateau.
IBC's Chief Executive Officer, Sofyan A. Djalil, said macroeconomic stability is no longer sufficient to drive higher growth. "Indonesia is at an inflection point, where policy decisions will determine the direction of future growth," said Sofyan Djalil during the launch of the report in Jakarta on Wednesday, January 14, 2026.
Amid global trade fragmentation, Indonesia must take priority in strengthening the direction of its growth, said the chair of the IBC Supervisory Board, Arsjad Rasjid. He emphasized the importance of bolstered productivity, business certainty, and strengthening investment flows to maintain medium-term growth foundations.
Arsjad Rasjid believed Indonesia's economy remains resilient amidst global uncertainty, but weakened household consumption, investment slowdown, and restrained fiscal and monetary policy could put a strain on growth momentum.
IBC projects 4.95 percent economic growth for Indonesia this year, above the projected global growth at around 2.4-3.1 percent. The global economic condition is affected by geopolitical fragmentation, trade tensions, and China's economic slowdown.
In the report, IBC proposes three main catalysts to drive economic growth, namely policy certainty, increased human resources, and deepening the capital, or financial sector.
Coordinating Minister for Economic Affairs Airlangga Hartarto welcomed IBC's report, stating that the government is preparing a roadmap to boost Indonesia's exports tenfold in the next 10 years.
Read: Indonesia's Purbaya Optimistic Rupiah Will Strengthen as Economy Recovers
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