ED – this is bne IntelliNews's annual Indonesia OUTLOOK 2026 for the upcoming year, where we make a forward-looking assessment for all of the major Global Emerging Markets in Emerging Europe, Asia, Latin America, Africa and the Middle East, drawing on insightful reporting from our bureaus around the world. What is on the agenda? What are the prospects for economic growth and what problems lie in store in the coming year? A detailed report that covers, business, economics, finance, energy, politics and the major sectors of the most important markets. ENDS Indonesia entered the close of 2025 in a position of relative strength, having consolidated macroeconomic stability while navigating a complex global environment. The economy has maintained steady momentum, with growth holding around the 5% mark, supported by resilient domestic consumption and continued progress in structural reforms. Inflation has remained contained, reflecting disciplined monetary management and effective supply-side interventions, while fiscal policy has stayed within statutory limits, reinforcing investor confidence and shielding the country from the volatility affecting other emerging markets. A central economic achievement of 2025 has been the government’s focus on long-term structural transformation. The national housing-led growth programme has expanded, stimulating employment, improving access to affordable homes and crowding in private capital. At the same time, regulatory simplification and streamlined business licensing have improved the investment climate, encouraging stronger private-sector participation in manufacturing, digital services and infrastructure. These reforms have been complemented by efforts to strengthen food security, energy resilience and industrial downstreaming - areas seen as central to Indonesia’s ambition of climbing the global value chain. Politically, 2025 has been a year of consolidation under the new presidential administration. Early policy signals have emphasised fiscal discipline, with a high-profile rationalisation of non-essential spending and a reallocation of resources towards social programmes and public welfare. This has been accompanied by a renewed focus on governance efficiency and performance-based budgeting, strengthening the state’s capacity to deliver services across the archipelago. Indonesia has simultaneously elevated its diplomatic presence, positioning itself as a leading voice for the Global South and an increasingly influential actor in regional economic and security discussions. Its stable political transition, coupled with measured policy continuity, has reinforced perceptions of Indonesia as a predictable and pragmatic partner. As global uncertainty persists, challenges remain - particularly in boosting productivity, accelerating investment and ensuring equitable growth. Nonetheless, Indonesia’s achievements in 2025 underscore a country moving with purpose towards long-term economic resilience and enhanced geopolitical relevance.