James Riady Sees No Reason for Pessimism Entering 2026

JAKARTA, Investortrust.id — James Riady says Indonesia has no sufficient reason for pessimism entering 2026 after the economy grew 5.11 percent in 2025, the highest among G20 members, as structural government programs and accelerating fiscal spending strengthen domestic demand and investor confidence.

He delivered the remarks on Friday, Feb 13, 2026 in Jakarta during the Kadin Indonesia Diplomatic–Economic Breakfast, highlighting fourth-quarter growth of 5.39 percent as the strongest pace since the post-pandemic recovery.

Riady, Coordinating Vice Chairman for Foreign Affairs at Kadin Indonesia, said fiscal conditions remained healthy and early budget disbursement in the first quarter of 2026 would reinforce momentum.

"If we look at various economic indicators, there is no sufficiently strong reason for us not to be optimistic entering 2026. We are entering this year with a strong economic foundation and healthy fiscal conditions," he said.

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Momentum of consistent growth

He noted that economic growth improved steadily across all four quarters of 2025, culminating in a 5.39 percent expansion in the final quarter.

"This is a very good momentum and an achievement we should be grateful for. Indonesia is among the countries with the highest economic growth within the G20," he said.

Retailers had actively searched for new outlets, shopping centers reported rising demand, and business activity in January remained solid, signaling resilient domestic consumption.

Riady said the government’s three million housing program and the Free Nutritious Meals initiative were beginning to deliver structural economic effects.

"One of the most important initiatives is the government’s large-scale housing development. Indonesia still faces a significant housing backlog," he said.

He described the housing drive not merely as a social program but as a powerful economic engine capable of generating broad employment and potentially adding 1 to 1.5 percentage points to gross domestic product growth.

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Building trust through diplomacy

Riady stressed that economic foundations were not built solely on macro figures and fiscal policy but also on trust between nations.

"Trade follows trust, and trust begins with mutual understanding. Culture is where that understanding starts," he said.

He argued that in a rapidly changing global environment marked by supply chain reorganization and selective capital flows, Indonesia must position itself clearly and credibly.

"For Indonesia, the question is not whether the world is changing, but how we position ourselves clearly and credibly amid that change," he said.

He revealed that Indonesia was preparing to sign a key trade agreement with the United States on Feb 19 in Washington, D.C., reflecting rising confidence in Indonesia as a stable economic partner.

"Optimism is not emotional optimism. It is structural, data-based, and rooted in real economic activity on the ground," he said.