JAKARTA (Reuters) -Indonesia’s central bank expects economic growth of 5.33% next year, and if fiscal spending can be accelerated then growth could reach the government’s target of 5.4%, Governor Perry Warjiyo said on Wednesday.
Annual headline inflation for 2026 was seen at 2.62%, while the rupiah was seen trading at an average of 16,430 per dollar next year, Warjiyo said.
“(If) the faster fiscal spending can be implemented, economic growth could reach 5.4%,” Warjiyo told a parliamentary hearing on the central bank’s budget for next year.
The growth forecast is among the indicators used by Bank Indonesia to formulate its budget for next year.
Bank Indonesia also set a credit growth target of 8% to 12% for next year, compared with 8% to 11% this year.
President Prabowo Subianto has set a target of lifting economic growth to 8% by the end of his five-year term in 2029.
(Reporting by Stefanno Sulaiman; Editing by John Mair)
