RRI.CO.ID, Jakarta - The Committee for Financial System Stability (CFSS) has projected that Indonesia’s economic growth will remain robust in 2026 despite mounting global pressures, with national financial stability expected to be maintained through a coordinated policy mix.

“In 2026, economic growth is projected to rise to 5.4 percent year-on-year,” Finance Minister Purbaya Yudhi Sadewa said at a CFSS press conference in Jakarta on Tuesday, January 27, 2026, as quoted by Antara.

Entering January 2026, global financial markets experienced heightened volatility, driven primarily by trade tensions and geopolitical developments.

The CFSS noted that global economic growth in 2026 would continue to be affected by the lingering impact of the United States import tariff policies and persistent vulnerabilities in global supply chains. 

However, the outlook for the US economy has improved, supported by increased investment in technology, including artificial intelligence, and fiscal stimulus in the form of tax cuts.

By contrast, economic growth in Japan, China, and India is expected to slow in 2026 due to weakening domestic demand and exports.

From a global financial market perspective, the room for cuts to the Fed Funds Rate has become increasingly limited, while US Treasury yields remain elevated amid a still-sizeable US fiscal deficit.

“Global money market uncertainty has increased, particularly due to trade war tensions and escalating geopolitical risks,” Minister Purbaya said, underscoring the need for adaptive policy responses.

The International Monetary Fund, in its January 2026 edition of the World Economic Outlook, revised its global economic growth forecast upward to 3.3 percent for both 2025 and 2026, above its October 2025 projection.

Meanwhile, Indonesia’s economy throughout 2026 is expected to be supported by stronger domestic demand, in line with coordinated policy measures undertaken by the government and other CFSS member institutions to sustain economic growth.

Various economic indicators continue to show solid performance, which is seen as sufficient to maintain growth momentum in the period ahead.

“Going forward, investment will continue to be strengthened, among other measures, through Danantara Indonesia’s role as a catalyst for private investment, including in downstream natural resource industries, as well as efforts to improve a competitive investment climate through the establishment of the Government Strategic Program Acceleration Task Force, or Satgas P2SP,” Minister Purbaya said. ***