OECD: "Indonesia's Economic Growth Projected at 5.2% in 2026... 5.1% Next Year"

【Jakarta (Indonesia) = Correspondent Aulia Maulida Hamdani】 The Organisation for Economic Co-operation and Development (OECD) forecasts Indonesia’s gross domestic product (GDP) growth rate at 5.2% this year and 5.1% next year, predicting that robust domestic demand and improved terms of trade will support increased investment.
According to local media reports on the 28th, the OECD projected in its 'OECD Economic Outlook Interim Report,' released on the 23rd, that the Indonesian economy will grow by 5.2% in 2026 and 5.1% in 2027. In particular, it analyzed that improvements in terms of trade would support further investment expansion. Inflation was expected to rise to 3.3% this year before slowing to 3.0% in 2027.
The OECD explained that government price support policies in Indonesia and other emerging major Group of Twenty (G20) countries are mitigating the burden of rising energy prices on households and businesses.
Robust domestic demand was cited as a key factor supporting Indonesia's growth. The OECD assessed that, along with other emerging G20 nations such as India and Brazil, Indonesia's growth is driven by solid domestic demand and government policies aimed at mitigating the impact of rising energy prices. However, uncertainty in the global economy was identified as a major risk factor. The OECD analyzed that energy supply disruptions due to conflicts in the Middle East, rising raw material prices, and high interest rates could reduce household purchasing power and constrain future growth. Conversely, it projected that increased investment and production related to artificial intelligence (AI) would act as a supporting factor for the growth of the global economy.
The OECD projected global GDP growth at 2.9% in 2026 and 3.0% in 2027. It pointed out that while inflationary pressures could ease as energy prices gradually stabilize, inflation and growth prospects could deteriorate again if supply disruptions in the Middle East persist or food production declines due to extreme weather events.
[email protected] Correspondent Aulia Maulida Hamdani Reporter