Prabowo Boosts Economic Diplomacy at Indonesia’s Davos Pavilion

President Prabowo Subianto visited the Indonesian Pavilion on the sidelines of the World Economic Forum (WEF) Annual Meeting 2026 in Davos, Switzerland, on Thursday, January 22, to strengthen Indonesia’s economic diplomacy. 

The Presidential Secretariat described the visit as a demonstration of Prabowo’s commitment to active, inclusive, and results-oriented diplomacy, ensuring Indonesia’s participation at the WEF fosters partnerships for a better future. 

Upon arrival, the president was welcomed by Indonesian citizens and members of the Indonesian diaspora living in Switzerland and neighboring countries. He also held informal exchanges with foreign visitors, including Norwegian nationals. 

Prabowo later joined state officials and leaders from the Indonesian Chamber of Commerce and Industry (Kadin) for informal discussions over Indonesian coffee showcased at the pavilion. 

The president was accompanied by his son, Didit Hediprasetyo, and a delegation comprising Coordinating Minister for Economic Affairs Airlangga Hartarto, Foreign Affairs Minister Sugiono, Investment Minister Rosan Roeslani, Communication and Digital Affairs Minister Meutya Hafid, and Cabinet Secretary Teddy Indra Wijaya. 

Carrying the theme “Indonesia Endless Horizons,” the pavilion serves as the official platform to present Indonesia’s perspectives and investment policies. It hosts high-level dialogues, thematic discussions, and business-matching sessions with global partners. 

Earlier the same day, President Prabowo delivered a special address to world leaders and investors. In his remarks, he outlined the government’s vision and economic strategies, which observers have dubbed “Prabowonomics.” He shared the stage with several world leaders, including United States President Donald Trump and French President Emmanuel Macron. 

Source: Antara News
 

IMF Expects Indonesia’s Economy to Grow 5.1% This Year 

The International Monetary Fund (IMF) has adopted a more positive outlook on Indonesia’s economy, forecasting growth of 5.1% in 2026, according to its World Economic Outlook Update released on Monday. 

The revised projection marks an improvement from the IMF’s October forecast of 4.9% growth for this year. The fund also raised its 2027 growth projection for Indonesia from 5% to 5.1%. 

The outlook echoes conclusions from the IMF’s Article IV Consultation in November, reaffirmed in a statement issued on Wednesday. The IMF highlighted Indonesia’s inflation projection of 2.5%, the midpoint of the official target range, a contained current account deficit, and ample foreign exchange reserves as foundations of economic resilience. 

The upgrade came as the IMF raised its global growth projection for 2026 to 3.3%, up from 3.1% in its October report, while keeping the 2027 global growth outlook unchanged at 3.2%. 

However, the fund pointed to risks from global trade tensions, economic uncertainty, and financial market volatility as key challenges in its latest assessment. 

To achieve long-term growth targets under the Golden Indonesia 2045 vision, the IMF recommended data-driven monetary and exchange rate policies to safeguard stability, gradual normalization of accommodative macroprudential measures as credit recovers, and acceleration of structural reforms to improve governance, trade integration, and the investment climate. 

The IMF’s executive board praised Indonesian authorities for maintaining inflation within the target band and noted that further monetary policy easing through 2025 could support growth. It also highlighted progress in deepening financial markets, strengthening monetary policy transmission, and maintaining a well-regulated financial sector. 

On fiscal policy, the IMF cited the government’s commitment to prudent management supported by credible fiscal rules. While welcoming the IMF’s assessment of Indonesia’s resilience, economic observers cautioned that projected growth remains below the 6–7% annual rate considered necessary for Indonesia to reach high-income status by 2045. 

Bank Indonesia (BI) said the IMF’s outlook aligns with the central bank’s own assessment. BI projects Indonesia’s gross domestic product (GDP) to grow by around 5.3% year on year in 2026, supported by rising consumption and investment. Presentation materials from BI indicate growth of 4.9%–5.7% in 2026 and 5.1%–5.9% in 2027. 

Source: The Jakarta Post 

Jakarta Records USD 16 Billion in Investment as Investor Confidence Grows 

Jakarta attracted IDR 270.9 trillion, equivalent to USD 16 billion, in investment throughout 2025, marking an increase of 11.99% from the previous year, Governor Pramono Anung said on Wednesday. 

The total comprised IDR 175.3 trillion in domestic investment and IDR 95.6 trillion in foreign direct investment, Pramono said. 

“This achievement is a strong indicator of the high level of investor confidence in the Jakarta provincial administration,” he said at a news conference at City Hall. 

According to Pramono, investment inflows into the capital accounted for around 14% of total national investment, positioning Jakarta as one of Indonesia’s largest contributors to overall economic activity. 

Beyond investment performance, Pramono highlighted Jakarta’s economic growth. In the third quarter of 2025, the capital’s economy expanded by 4.96% year on year, reflecting continued recovery and stability. 

“This shows that Jakarta’s economic recovery and stability remain well maintained,” he said. 

Public optimism toward Jakarta’s economic outlook has also strengthened, Pramono added. The consumer confidence index stood at 145.33 in December 2025, indicating positive public perceptions of both current economic conditions and future prospects in the capital. 

Source: Jakarta Globe