Antara News·Indonesia·Tuesday, November 3, 2026 at 02:59 PM UTC

KSSK revises Indonesia's 2026 growth projection to 5.4--5.5 percent

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Imamatul Silfia, Raka Adji

Jakarta (ANTARA) - The Financial System Stability Committee (KSSK) has revised Indonesia's 2026 economic growth projection to 5.4–5.5 percent year-on-year (yoy), down from the 5.6–6.0 percent forecast issued in August 2026.

"Indonesia's economy in 2026 is projected to grow around 5.4–5.5 percent year-on-year," Finance Minister Suahasil Nazara said at a KSSK press conference in Jakarta on Tuesday.

Despite the downward revision, the committee considers the domestic economy to remain resilient amid rising global pressures.

Third-quarter economic growth in 2026 is projected to stay strong, supported by solid domestic demand and positive export performance.

Growth in household consumption continues to be fueled by ongoing government fiscal stimulus.

Suahasil added that the state budget is being maintained to serve as a shock absorber through subsidies, compensation, social protection, food price stabilization, and job creation programs.

Meanwhile, investment is predicted to maintain strong growth, driven by ongoing downstream processing projects and infrastructure development under government priority programs.

He further said that public spending is supported by accelerated state disbursements and the distribution of social assistance.

On the external front, the finance minister noted that non-oil and gas export performance remains positive, backed by higher prices and demand for export commodities.

The KSSK also highlighted several indicators reflecting the resilience of domestic economic activity. For instance, sales of cars and motorcycles in September 2026 grew by 28.1 percent and 15.4 percent year-on-year, respectively.

In addition, Indonesia's Manufacturing Purchasing Managers' Index (PMI) continued its expansion, rising from around 52 in September to 54 in October 2026.

"The strengthening of policy synergy between the government and Bank Indonesia (BI), alongside collaboration between the government and Danantara through the 'two arms of the state' approach, continues to be reinforced to maintain stability and drive high-value-added growth," Suahasil remarked.

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