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Indonesia Eyes 2026 Growth Surge, President Announces at Davos

Bloomberg Markets •
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At the World Economic Forum in Davos, President Prabowo Subianto outlined a new policy program aimed at boosting Indonesia's economy. He forecasted a sharp uptick in growth for 2026, citing reforms that streamline investment and expand infrastructure. The speech targeted the business elite attending the summit for global investors today.

Indonesia's GDP grew 5.6% last year, but the new agenda promises to lift it to 6.5% by 2026, according to the president. Key initiatives include tax incentives for tech firms, digital payments expansion, and a $10 billion infrastructure fund aimed at rural connectivity to attract foreign direct investment and create jobs.

Analysts warn that execution risk remains high, especially in regulatory approvals and fiscal discipline. Yet, the announcement signals a shift toward a more open economy, potentially drawing multinational corporations into Indonesia's growing consumer market. Investors will monitor upcoming policy rollouts and the government's ability to deliver on promises in 2026.