IBC Business Outlook 2026 - Inflection: Breaking the Growth Plateau

Indonesia’s economy in 2026 is expected to grow around five percent, supported by macroeconomic stability but constrained by a weakening global environment and narrowing policy space. Growth quality is deteriorating as household consumption softens, investment momentum weakens, productivity gains slow, and external buffers begin to narrow. Without decisive structural reforms to strengthen regulatory certainty, human capital, and market competition, Indonesia is unlikely to break out of its current growth plateau.

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