Indonesia Sets 2026 Economic Growth Target Between 5.2% and 5.8%

Jakarta, VIVA – Indonesian Finance Minister, Sri Mulyani Indrawati, announced that the government is targeting economic growth between 5.2% and 5.8% for the 2026 fiscal year.

The target aims to maintain consumer purchasing power, improve the investment climate, and strengthen human capital.

The projection was delivered during the 18th Plenary Session of the 2024–2025 Parliamentary Session, as part of the government’s presentation of the Macroeconomic Framework and the Main Fiscal Policy Points for the 2026 Draft State Budget (RAPBN).

“We project 2026 economic growth in the range of 5.2% to 5.8%, while continuing to support consumer spending, encourage economic transformation and reform—particularly in natural resource downstreaming—and improve the investment climate and human resources,” the minister on Tuesday (May 20).

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Menteri Keuangan, Sri Mulyani Indrawati

Photo :

• VIVA.co.id/Anisa Aulia

She stated that this growth range forms a solid foundation for President Prabowo Subianto’s long-term target of 8 percent economic growth.

The Minister also stated that, factoring in risks and uncertainties, the 10-year government bond (SBN) interest rate for 2026 is expected to range between 6.6% and 7.2%.

“This is supported by an attractive spread and investor confidence in Indonesia’s economic stability and sound fiscal policy,” the minister added.

As for the exchange rate, the rupiah is expected to range between IDR 16,500 and IDR 16,900 per US dollar in 2026. Inflation is projected between 1.5% and 3.5%.

Other macroeconomic assumptions for 2026 include, Indonesian crude oil price (ICP): US$60–80 per barrel, Oil lifting target: 600,000–605,000 barrels per day, and Gas lifting target: 953,000–1,017,000 barrels of oil equivalent per day.

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“This is supported by an attractive spread and investor confidence in Indonesia’s economic stability and sound fiscal policy,” the minister added.