US-Iran Talks Stalemated, Indonesia Confident of Q1 Economic Growth Above 5%

Bank Indonesia (BI) remains optimistic that Indonesia’s economy will grow above 5% in the first quarter despite ongoing tensions in the Middle East following the failure of the US-Iran agreement mediated by Pakistan some time ago.

BI’s optimism is not without reason, given that Indonesia has a strong economy that can continue to be driven forward.

“The momentum of economic strengthening must be maintained. The first quarter is expected to grow above 5 percent; we project 5.2 percent. We have a sufficiently strong economy to be driven,” said BI Senior Deputy Governor Destry Damayanti at the Central Banking Forum 2026 in The Grand Ballroom, Mandarin Oriental Jakarta, on Monday (13/4/2026).

BI itself, Destry continued, will routinely conduct surveys of entrepreneurs and corporations. She noted that the consumer spending index above Rp 5 million remains high, and the Purchasing Managers’ Index (PMI) or indicator of industrial sector performance continues to rise.

“From the producers’ side, the trend in expectations is improving. It has declined recently due to fears from Iran, but the momentum is still good,” she explained.

In addition, BI will continue to synergise and maintain policies that remain pro-real sector so that Indonesia’s economy can continue to grow well.

This is also being done by other countries. Where policy responses at this time are important to keep national economic conditions stable.

Even some countries are pushing for fiscal policies to remain loose. Each country will naturally be more cautious and compete to make domestic assets attractive.

“The President stated that we must have energy resilience. He mentioned three things for national resilience. First, food resilience focuses on land opening, MBG, KDMP, and so on. Second, energy resilience, he is building new refineries including now. In the US, coal is being opened again. We have very large coal resources. Resilience in security and defence; experiences from some countries raise awareness that defence must absolutely be strengthened; defence and security are the top priority at this time,” she concluded.