JakartaGlobe-Mar 15
Many economists believe Indonesia’s economy is stagnating or deteriorating, according to the latest survey released by the Faculty of Economics and Business, University of Indonesia. The Economists Survey for the First Half of 2026, which polled 85 economists, found that 48% of respondents believe the current economic situation has worsened compared with the previous quarter. Another 38% see no improvement or decline, while only 14% believe conditions have improved. “Overall, the survey shows a cautious outlook among experts. Most respondents believe the economy has either deteriorated or remained stagnant, with inflationary pressures becoming a growing concern,” the report said. Data from the Central Statistics Agency showed monthly inflation reached 0.68% in February 2026. Annual inflation stood at 4.76%, while year-to-date inflation was recorded at 0.53%. The latest price pressures were largely driven by rising food costs. The findings are consistent with earlier surveys conducted in October 2024 and March 2025, suggesting that economists’ concerns about Indonesia’s economic performance have persisted across three consecutive surveys over the past 18 months. Rahma Gafmi said economists see serious constraints in Indonesia’s growth engine. Rising food prices and global energy costs have begun eroding household purchasing power, she said.
At the same time, a tightening labor market has slowed wage growth and household income expansion. “There are signals that the government wants to minimize the role of the private sector, which could worsen the business climate and potentially hold back investment expansion,” Rahma said on Sunday. She added that the government now faces a major challenge in proving that its economic growth target of 5.4%–5.6% can be achieved. Read more at: https://jakartaglobe.id/business/nearly-half-of-economists-say-indonesias-economy-is-deteriorating-ui-survey#google_vignette
