INDONESIApezuounyainsopsig olanaWORLDBANKGROUPECONOMICIEPPROSPECTSDeziJopezuoupny eansopsig olgnidManaging Risks,Unlocking ProductivityJune 2026
0 2026 InternationalBankforReconstruction andDevelooment/TheWorld Banl1818HStreetNWWashington DC20433Telephone:202-473-1000Internet: www.worldbank orgIThis wo k is a odut of the taf The Worl Bank with eter al contibutions, and i sported by fundingfrom the Austrlian Government under the Australia-World Bank Indonesia Partnership (ABIP) program. The findings, interpretations, and condlusions expressed in this work do not necessarily reflect the views ofTheWorld Bank, its Board of Executive Directors, or the aovernments they represent, orthe Australian GovernmentThe World Bank does not auarantee the accuracy, completenes, or currency of the data included in his workand does not assume responsibility for any errors, omissions, or discrepancies in the infomation, or liabilitywith respect to the use of or filure to use the information, methods, processes, orcondlusions setforth.The boundaries, colors denominations, and other information shown on any map in this work do not imply anyudament on the part of The World Bank concernina the leaal status of anv territorv or the endorsement oracceptance of such boundariesNothing herein shall constitute or be construerconsidered to be alimitation upon or waiver of the privilegesand immunities of The World Bank, all of which are specifically reservedRights and PermissionsThe material in this work is subject to copyright. Because The World Bank encourages dissemination of itsknowledae, this work may be reproduced, in whole or in part, for noncommercial purposes as lona as ful Any queries on rights andlicenses, including subsidiary rights, should be addressed to World Bank PublicationsThe World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625;e-mail; pubrights@worldbank.ora.Allimages used in the report are Al generated. The report is designed and typeset by Arsianti
>>> Indonesia Economic Prospects|June 2026TableofContentsLISTOFFIGURES.TARIFSANDROXFOA.1RecentPRFFACF心ABBREVIATIONSANDACRONYMS气1EXECUTIVESUMMARYA3.Outook7702A.ECONOMICUPDATE1RecentFconomicDevelonments2.The PolicyStance,3.Outlook andRisks,4PolicuPriorities:2REFERENCES33CLICKTHESIDESECTIONOWISHTOREAD.I1I
> Managing Risks,Unlocking Productvity,LISTOFFIGURES.TABLES. ANDBOXESFIGURESFigure A.2; Services and manufacturing drove growth while agriculture easedFigure A.3: Supply constraints foreshadow slowing momentum into MayFiaureA.4:Food and administered prices drove recentinflation dnamicsA.1RecentFiaureA5;Indonesiafaced a two-staeshock in earlv 2026; domestic financial wolatilitv followed bFFFFFFigureA.6;GoodsimportsarewatafasteroacethanexoortFiaureA7: orimarily driven by acceleration in capital goods importsA.2.ThePolicyFiaure A.8: Slowina aoods exports in 2026 was due to lower volumesStanceFigure A.9:The BoP deficit widened on a larger CAD and other investment outlowsFigure ...
