RRI.CO.ID, Jakarta - Finance Minister Purbaya Yudhi Sadewa at the press conference for the first Financial System Stability Committee (KSSK) of the year on Tuesday, 27 January 2026, presented a domestic economic outlook. This outlook stands in contrast to the current cautious international climate.

While global markets face increasing pressure, the Minister expressed firm confidence that Indonesia’s economic trajectory will remain resilient and steady throughout the coming year.

"Indonesia's economic growth remains strong and is capable of maintaining its growth momentum moving forward. Economic growth in the fourth quarter of 2025 is expected to be higher, bolstered by an increase in domestic demand alongside improving confidence among economic players," Minister Sadewa remarked during the press conference.

This optimism comes at a time when major global players are facing slowdown. He mentioned that the IMF recently revised global growth projections to 3.3% for 2026 (3.2% global growth in 2025). Despite that, many developed nations are facing downward trends. These countries are currently grappling with softening labour markets, diminishing domestic demand, and weakening export performance, creating a synchronized global slowdown.

In contrast, Indonesia’s economy is charting an upward path, with the government predicting a rise to 5.4% growth in 2026. A primary driver for this forecast is the healthy liquidity within the domestic market. By December 2025, Indonesia recorded a 9.6% year-on-year increase in the total money circulating in the economy (M2), signalling robust financial activity across the archipelago.

Minister Sadewa explained that this monetary expansion was largely fuelled by a significant rise in bank loans and credit sales. This data suggests that both businesses and individual consumers are actively borrowing and spending, which serves as a vital indicator of high confidence in the national economy’s stability and future prospects.

Reflecting on the previous year's performance, the Minister provided a roadmap for the near future. “With these developments, overall economic growth for 2025 is projected to be around 5.2%. Meanwhile, in 2026, economic growth is expected to increase to 5.4%, driven by rising domestic demand and various policy synergies between the government and other KSSK member institutions,” he noted.

To ensure this momentum is not lost, the government is intensifying its focus on investment downstreaming and enhancing the nation's ease of doing business. This is being executed through the Task Force for the Acceleration of Government Strategic Programs (SATGAS P2SP), which aims to create a more competitive investment climate to attract both local and foreign capital.