BI Remains Optimistic About Indonesia's Economy Growing at Upper Limit of 5.9 Percent in 2027

Bank Indonesia (BI) believes Indonesia’s economic growth in 2027 can reach the upper limit of its 5.1–5.9 per cent projection range, supported in part by robust domestic demand. Speaking at a working meeting with House of Representatives Commission XI in Jakarta on Wednesday (10 June 2026), BI Governor Perry Warjiyo said next year’s domestic growth would also be underpinned by various measures to boost investment and improve Indonesia’s export performance. This aligns with an improving global economy, where growth is forecast to rise from 3 per cent in 2026 to 3.1 per cent in 2027. Perry cited three main factors behind this optimism. First, the government’s fiscal policy remains prudent, with a low and manageable deficit, accompanied by budget reallocations that are more efficient, productive, and support public welfare. “Being pro-growth and pro-welfare will support economic growth,” Perry said. Second, the well-orchestrated implementation of national priority programmes, spanning food security, energy security, and downstreaming and industrialisation of natural resources. Third, the strengthening of coordination between BI and the government to support sustainable economic growth. Although monetary policy remains directed at maintaining stability, BI stated that macroprudential policy and payment systems will continue to be optimised to support national economic growth. To bolster growth, BI has prepared five measures through macroprudential policy and payment systems. First, purchasing Government Securities (SBN) on the secondary market to strengthen fiscal and monetary coordination. As of 9 June 2026, BI had bought IDR 156.5 trillion worth of SBN, following IDR 332.14 trillion in purchases throughout 2025. Second, increasing macroprudential liquidity incentives by lowering the reserve requirement from 9 per cent to 3.5 per cent to encourage bank lending to government priority sectors. As of the first week of May 2026, these incentives had reached IDR 424.7 trillion. “When banks channel credit to government priority sectors, we will of course provide liquidity incentives. We also encourage banks to become more efficient so that lending rates can be lower,” Perry said. Third, easing various macroprudential policy instruments and accelerating credit disbursement through the Indonesian Intermediation Acceleration programme, in cooperation with the Financial Services Authority (OJK), relevant ministries, banks, and businesses. Fourth, accelerating the digitalisation of the payment system to increase productivity, efficiency, and strengthen the grassroots economy. This is pursued through expanding the use of QRIS, electronification of government transactions, development of cross-border QRIS, implementation of local currency transactions, and developing digital micro-entrepreneurship innovations through the Indonesian Digital Innovation Centre. “We will continue to expand QRIS. After Japan, China and Korea, we seek support to extend it to Saudi Arabia for Umrah and Hajj pilgrims, and also to India for Indian tourists,” Perry said. The fifth and final step is expanding the development of MSMEs and inclusive financial and economic programmes, both conventional and sharia, through BI’s 46 representative offices. These programmes cover the development of traditional textiles, coffee commodities, and strengthening economic independence in Islamic boarding schools.