Indonesia’s central bank expects the economy to grow 5.33% in 2026, and said growth could reach the government’s target of 5.4% if fiscal spending is accelerated, Governor Perry Warjiyo said on Wednesday. Annual headline inflation for 2026 is projected at 2.62%, while the rupiah is expected to trade at an average of 16,430 per US dollar next year, he said. “If faster fiscal spending can be implemented, economic growth could reach 5.4%,” Warjiyo told a parliamentary hearing on the central bank’s 2026 budget, according to Reuters. Bank Indonesia also set a credit growth target of 8%–12% for next year, compared with 8%–11% this year. President Prabowo Subianto has set a longer-term goal of lifting economic growth to 8% by the end of his five-year term in 2029. Data from BPS–Statistics Indonesia showed that, in the first three quarters of 2025, the GDP grew 5.01% compared with the same period in 2024. For the full year 2025, the government has maintained its GDP growth target at 5.2%.