Unravelling Indonesia's Economic Pressures in 2026

With sharp analysis, courage in decision-making, and consistency in implementation, Indonesia has the opportunity not only to survive but also to grow stronger.

Jakarta (ANTARA) - The year 2026 has not truly opened a new chapter for Indonesia’s economy. Clouds of uncertainty still loom, now feeling closer and more tangible in daily life.

Prices are slowly creeping upwards, employment has not fully recovered, and confidence in policy direction is being tested. In such a landscape, what is needed is not mere caution, but clarity in reading the situation and courage in taking steps.

The First Semester 2026 Economic Expert Survey released by the Institute for Economic and Social Research at the Faculty of Economics and Business, University of Indonesia, provides an overview that cannot be ignored.

The 85 economists involved in the study generally assess Indonesia’s economic condition as worsening or at least stagnant.

This assessment is not mere perception, but a reflection of several indicators showing real pressures, particularly from the side of inflation, which is expected to rise significantly in the near term.

This increase in inflation expectations serves as an important signal that people’s purchasing power could be eroded. In an economy still heavily reliant on domestic consumption, such pressures not only affect households but also the sustainability of the business world.

When people start holding back on spending, businesses face declining demand, which ultimately could lead to slowdowns in production and employment absorption.

It is no surprise that the survey also notes that the labour market and business environment are projected to remain sluggish or even worsen.

These issues become even more complex when linked to policy effectiveness. Economists assess that fiscal policy, the financial sector, and the labour market still have limitations in driving stronger recovery.

Although there is a slight improvement in perceptions of monetary policy, this is not sufficient to offset the broader challenges.

Concerns over inclusivity and economic inequality are actually strengthening, indicating that existing growth has not been fully felt evenly across all segments of society.