Purbaya, BI, OJK and LPS Confident Indonesian Economy Will Grow Strongly in Q2-2026

The Financial System Stability Committee (KSSK) assesses that the Indonesian economy will grow strongly in the second quarter of 2026. Finance Minister Purbaya Yudhi Sadewa stated that this is driven by sustained public purchasing power, supported by the State Budget (APBN), food and energy price stabilisation, and stimulus measures. Investment is also expected to grow robustly, bolstered by downstream processing and infrastructure development. Purbaya added that government consumption is posting positive growth. “Policy coordination between the government, Bank Indonesia (BI), the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS) continues to be strengthened to maintain liquidity, reflected in high primary money growth of 15.4% in the third week of July 2026, while banking intermediation functions are maintained,” Purbaya explained during the KSSK quarterly meeting release on Monday. He noted that manufacturing activity expanded in July 2026, with the Purchasing Managers’ Index (PMI) reaching 50.2, indicating business optimism. “The KSSK will be strengthened to maintain the growth momentum. With this synergy, Indonesia’s economy in 2026 is projected to grow in the range of 5.6% to 6% year-on-year, supported by the government and KSSK institutions,” he asserted.