JAKARTA – Governor of Bank Indonesia, Perry Warjiyo, expects Indonesia’s economic growth to reach between 4.9% and 5.7% in 2026.

He emphasised that the central bank continues to strengthen its policy mix—covering monetary, macroprudential and payment system measures—in synergy with government policies to maintain stability while supporting economic growth.

Speaking at the announcement of the April 2026 Board of Governors Meeting (RDG), held virtually in Jakarta on Wednesday (22/4), Perry said growth needs to be sustained amid a deteriorating global outlook.

Recent indicators show that the economy expanded in the first quarter of 2026, driven primarily by strong domestic demand.

Household consumption rose, supported by improved consumer confidence, stable income levels and a surge in demand during the Eid al-Fitr 1447 H festivities.

Government spending also increased, driven by the disbursement of holiday allowances (THR), higher social spending and various incentives, including transfers to regional governments.

Meanwhile, investment—particularly in the construction sector—remained robust, supported by the acceleration of priority government programmes.

Looking ahead, Perry said policy coordination between the government and Bank Indonesia will need to be strengthened further to counter the weakening global economic outlook.

Policy measures will be directed at mitigating the impact of the global slowdown while boosting domestic demand as a key driver of growth.

He added that government priority programmes will continue to focus on job creation, strengthening domestic demand and reinforcing fiscal resilience.

On the monetary front, Perry confirmed that BI has maintained its benchmark interest rate at 4.75% in April 2026, extending the unchanged stance for seven consecutive months since September 2025. (DK/ZH)