Crisis Management for a Conflict with North Korea

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Ekonomi diprediksi menguat di 2026 karena realisasi program pemerintah

Economy Predicted to Strengthen in 2026 Due to Government Program Implementation

Antara News | Local Language | News | Nov. 7, 2025 | UndeterminedEconomic Growth

Indonesia’s economy is projected to grow more robustly in 2026 due to the implementation of flagship government programs and more accommodative fiscal and monetary policies. Chief Economist of Citibank N.A. Indonesia, Helmi Arman, highlighted that expansive government spending and declining interest rates are expected to benefit sectors reliant on financing, particularly those serving lower- to middle-income groups.

However, Helmi Arman emphasized that fiscal and monetary stimulus alone will not sustain long-term economic growth due to constraints like the 3 percent budget deficit limit and limited capital flows into the bond market. He stressed the need to accelerate structural reforms that improve the ease of doing business, making investment the main driver of sustainable growth.

Citing Vietnam’s successful bureaucratic and investment reforms, including ministry and local government simplification and faster infrastructure development, Helmi pointed out that these measures have helped Vietnam become a top recipient of Foreign Direct Investment (FDI) in ASEAN, posing strong competition to Indonesia. He urged the Indonesian government to refocus on strengthening structural policies, such as reducing trade barriers and simplifying business regulations, to boost investor confidence and maintain sustainable economic growth amid global investment slowdowns.

According to Statistics Indonesia (BPS), Indonesia’s economy grew 5.04 percent year-on-year in the third quarter of 2025, with the GDP at current prices reaching Rp6,060.0 trillion.

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