Economist predicts Indonesia's economy to grow above World Bank projection in 2026

Jakarta (ANTARA) - Paramadina University economist Wijayanto Samirin believes Indonesia’s economic growth in 2026 still has the potential to exceed the World Bank’s projection, although breaching the five per cent level will be difficult amid current global uncertainties. “I think Indonesia will grow above the World Bank projection, but it will be difficult to break through five per cent,” Wijayanto told ANTARA in Jakarta on Friday. For context, the World Bank has cut its projection for Indonesia’s economic growth to 4.7 per cent from 4.8 per cent. However, from the second to fourth quarters, Indonesia’s economy is expected to face pressures from declining purchasing power, weakening exchange rates, rising inflation, and global uncertainties that encourage investors to adopt a wait-and-see stance. Additionally, there is the potential for El Niño to worsen economic conditions. In such conditions, he continued, several sectors are expected to become engines of growth. “Sectors with the potential to become engines of growth include trade, finance, mining and downstreaming, food and beverages, health, telecommunications, and retail,” said Wijayanto.