Indonesian Economy to Strengthen in 2026 as Private Sector Takes Lead

Economic Growth Projections

The Indonesian economy is poised for stronger growth in 2026 as the private sector is expected to become the primary engine of national economic expansion. Economists believe that with appropriate government support through fiscal policies and regulations, the private sector can drive growth through increased production, consumption, and investment ¹

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Financial Sector Optimism

Financial companies are optimistic about the upcoming year. CIMB Niaga Auto Finance (CNAF) is targeting an 8.8% contribution from working capital financing to its total portfolio by 2026, reaching Rp 8.47 trillion in total financing ²

. Similarly, Adira Finance (ADMF) is confident that its financing performance, including working capital, will improve in 2026 due to more favorable economic prospects and increased business activity ⁵

Source 5

https://keuangan.kontan.co.id/news/adira-finance-admf-optimistis-pembiayaan-modal-kerja-membaik-pada-2026

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Source 6

https://finance.detik.com/berita-ekonomi-bisnis/d-8289184/pengusaha-beberkan-syarat-agar-ekonomi-ri-tumbuh-6

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Capital Market Projections

Minister of Finance Purbaya Yudhi Sadewa has set an ambitious target for the Indonesian Composite Index (IHSG) to reach 10,000 by 2026. This forecast is based on expected better economic growth compared to 2025 and more synchronized economic policies between the government and Bank Indonesia. Purbaya expressed confidence that with a full year of economic stewardship, the government can achieve more consistent and effective policies ⁴

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Challenges Ahead

Despite the positive outlook, economists warn that significant structural challenges remain. The creation of quality employment opportunities is crucial for achieving higher economic growth targets, such as the 6% growth projected for 2026. The Indonesian Chamber of Commerce (APINDO) emphasizes that investment should be directed towards sectors that significantly absorb formal labor ³

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