BI Explains Indonesia's Current Economic Conditions to Thousands of Students

Jakarta, CNBC Indonesia - Deputy Governor of Bank Indonesia (BI) Aida S. Budiman explained Indonesia’s current economic conditions to thousands of students at the Yogyakarta Financial Festival 2026, at JEC, on Friday (22 May 2026). Aida said Indonesia’s economic growth remains robust to date amidst global volatility underpinned by the conflict in the Middle East. Evidence: Indonesia’s economy grew 5.61% in Q1 2026 and the business sector remains active. In addition, inflation remains held in check at 2.42% through April 2026. ‘Earlier the Finance Minister said growth is still good, Q1 growth 5.61%, and as Mr CT noted, inflation being contained, and inflation at 2.42%, BI projects 2.5% plus/minus 1% in line with the target agreed with the Ministry of Finance,’ she said. On the other hand, Aida said BI has recorded that the investment climate remains resilient despite global shocks. However, she reminded that the most important thing to do amid global volatility is to sustain domestic demand. ‘Domestic demand comprises consumption, investment, and government spending. This matters because even if the global economy goes up and down, domestic demand will keep our economy steady,’ she said. Regarding DIY Yogyakarta, BI says its economic growth reached 5.84%, higher than the national growth of 5.61%. Not only Yogyakarta; Aida noted that many regions in Indonesia have grown above the national average. ‘And this is the optimism we must maintain, so that we can grow; BI in 2026 projects growth of 4.9-5.7%,’ she added.