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The Threat of a Looming Recession

Monday, January 5, 2026

A number of institutions estimate that Indonesia’s economic growth will not exceed 5 percent in 2026. With few growth engines left, the possibility of a recession is wide open.

arsip tempo : 177307846049.

High-rise buildings in Jakarta, December 16, 2025. As of the end of October 2025, land and building tax (PBB-P2) revenue collected by the Jakarta Provincial Government reached Rp 10.32 trillion, exceeding the revised 2025 regional budget (APBD-P) target of Rp 10.25 trillion by 0.77 percent. Tempo/Tony Hartawan. tempo : 177307846049.

WHEN it comes to confidence that conditions this year will be better than last, Indonesians are the most optimistic people in the world. At least that is the picture painted by a survey conducted by the international research firm Ipsos Group, released on December 16, 2025. In a report titled Ipsos Predictions Survey 2026, Indonesia topped the rankings.

In the survey, Ipsos gathered opinions from 23,642 respondents under the age of 75 livin

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Finance Ministry economic growth Recession fiscal policy Purbaya Yudhi Sadewa Indonesia 2026 fiscal deficit
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