World Bank Raises Indonesia's 2026 Economic Growth Forecast to 5.2%

The World Bank raised Indonesia's 2026 economic growth forecast to 5.2% from 4.7%, reflecting stronger private consumption, higher public spending, and increased participation in global AI supply chains. Indonesia recorded 5.4% growth in the first half of 2026, supported by domestic demand and government programs. Despite the improved outlook, the World Bank noted challenges including weaker manufacturing activity, fiscal pressures, and potential market risks. Continued economic reforms are considered important to sustain long-term growth momentum.