Three Factors Boosting BI Governor's Confidence in 5.9% Indonesian Economic Growth by 2027

Bank Indonesia (BI) Governor Perry Warjiyo believes Indonesia’s economic growth in 2027 will reach the upper bound of the 5.1 to 5.9 per cent projection range, supported by strong domestic demand. During a working meeting with Commission XI of the House of Representatives in Jakarta, Perry stated that domestic economic growth next year will also be supported by various measures to boost investment and improve Indonesia’s export performance. This comes as the global economy improves, with growth expected to increase from 3 per cent in 2026 to 3.1 per cent in 2027. Perry outlined three main factors underpinning this optimism. First, the government’s fiscal policy remains prudent, with a low and controlled deficit. He noted this is accompanied by efforts to reallocate the budget more efficiently and productively while supporting public welfare. “Pro-growth and pro-welfare policies will support economic growth,” Perry said. Second, the well-orchestrated implementation of national priority programmes, ranging from food security and energy security to downstreaming and industrialisation of natural resources. Third, efforts to strengthen coordination between BI and the government to support sustainable economic growth. Although monetary policy remains directed at maintaining stability, Perry assured that BI will continue to optimise macroprudential policy and payment systems “to support national economic growth”.