INDONESIAECONOMICPROSPECTSI E PJune 2026Managing Risks, Unlocking ProductivityPublic Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure Authorized
© 2026 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.orgThis work is a product of the staff of The World Bank with external contributions, and is supported by funding from the Australian Government under the Australia-World Bank Indonesia Partnership (ABIP) program. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent, or the Australian Government.The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. All images used in the report are AI generated. The report is designed and typeset by Arsianti.
I I I>>> Indonesia Economic Prospects June 2026 Table of ContentsExecutive SummaryA.1. Recent Economic DevelopmentsA.2. The Policy StanceA.4. Policy PrioritiesA.3. Outlook and RisksTable of ContentsCLICK THE SIDE BUTTONS TO GO TO THE SECTION YOU WISH TO READ.LIST OF FIGURES, TABLES, AND BOXESIVPREFACEVIABBREVIATIONS AND ACRONYMSVIIEXECUTIVE SUMMARY1A. ECONOMIC UPDATE7 1. Recent Economic Developments7 2. The Policy Stance16 3. Outlook and Risks20 4. Policy Priorities22REFERENCES33
I v>>> Indonesia Economic Prospects June 2026 Table of ContentsExecutive SummaryA.1. Recent Economic DevelopmentsA.2. The Policy StanceA.4. Policy PrioritiesA.3. Outlook and Risks>>> Managing Risks, Unlocking ProductivityFigure A.1: Surging government consumption offsets weaker contri...
