The Government continues to closely monitor global dynamics, marked by rising geopolitical tensions and volatility in international financial markets. In response to these conditions, the Government ensures that Indonesia’s economic fundamentals remain strong and resilient, supported by solid policy coordination and sustained domestic economic resilience.

Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, stated that the Government respects the various views expressed by the public as valuable input in policy formulation. He added that Indonesia’s economic fundamentals are currently in a strong position and capable of withstanding global pressures.

“We respect the various views from the public. At the same time, we would like to emphasize that the Government ensures Indonesia’s economic fundamentals remain strong and resilient, supported by several key factors,” said Spokesperson Haryo.

Furthermore, Haryo explained that Indonesia’s macroeconomic stability remains well maintained. Economic growth in 2025 was recorded at 5.11% (yoy), relatively high compared to peer countries, while inflation remained within the target corridor of 2.5±1%. The Government continues to maintain this stability through inflation control and price stabilization policies.

From the perspective of domestic demand and the real sector, household consumption remains the primary driver of economic growth, supported by various fiscal stimulus measures and social assistance programs. Manufacturing activity has also shown strong performance, with a PMI of 53.8, indicating expansion and marking the highest level in the past two years.

Fiscal resilience also remains intact, with solid state budget (APBN) performance. As of February 2026, tax revenues grew by 30.4% (yoy), supported by tax reforms and the implementation of digitalization through the coretax system, which continues to strengthen the state revenue base and improve taxpayer compliance.

In addition, national food and energy security are becoming stronger. Indonesia has achieved self-sufficiency in several key food commodities and recorded a surplus in energy production through its biodiesel program. These conditions serve as an important buffer against global shocks, including those stemming from geopolitical conflicts.

The Government also continues to promote economic transformation through industrial downstreaming, strengthening investment, and accelerating digitalization. The development of the electric vehicle sector and renewable energy is part of a long-term strategy to create new and sustainable sources of economic growth.

Looking ahead, the Government remains optimistic that Indonesia’s economy can grow by around 5.4% in 2026, with maintained stability and ongoing structural reforms. The Government will also continue to prioritize prudence in responding to global dynamics, while ensuring that national economic resilience remains strong.

“We will continue to maintain stability and ensure that policies remain adaptive to global developments, so that the national economy continues to grow positively and sustainably,” Haryo concluded. (aml/tam)