Building Optimism Amid Global Uncertainty<\/p>\n
Jakarta, CNBC Indonesia \u2013 The government continues efforts to\nmaintain economic resilience through various policies and stimuli to\nsustain consumer purchasing power amid global uncertainties.<\/p>\n
Global economic uncertainties have worsened due to geopolitical\nconflicts, including the US-China trade war, Ukraine, and Iran,\nindirectly affecting the national economy.<\/p>\n
Fortunately, Indonesia\u2019s resilience, bolstered by a strong domestic\nmarket, has kept the economy growing at 5.61% in Q1 2026.<\/p>\n
Henoch Munandar, President Director of PT Bank SMBC Indonesia Tbk\n(SMBC Indonesia), expressed optimism that with maintained economic\nstability, Indonesia could become a regional growth hub.<\/p>\n
\u201cWe see a dynamic world where global supply chains, technology,\nenergy transition, and international investment flows are shaping a new\nnormal marked by volatility, turbulence, uncertainty, complexity, and\nambiguity. Amid this uncertainty, we hope Indonesia remains resilient,\nmaintains strong optimism and economic stability thanks to its large\ndomestic market,\u201d Munandar said while opening the SMBC Indonesia\nEconomic Forum 2026, reported on Thursday, 21 May 2026.<\/p>\n
Discussions at the forum highlighted that amid global fragmentation\nand rising volatility, domestic stability, policy consistency, and\ninvestor confidence will be key differentiators for a nation\u2019s\ncompetitiveness.<\/p>\n
SMBC Indonesia views national economic resilience not just as the\nability to withstand global pressures but as a foundation to strengthen\nIndonesia\u2019s position as a new regional growth centre. With increasingly\nselective global capital flows, regulatory certainty, institutional\nquality, and a stable investment climate will be crucial for attracting\nlong-term capital.<\/p>\n
This optimism is well-founded, as Indonesia can leverage global\ndynamics through strong competitiveness to expand business opportunities\nand create a sustainable economy.<\/p>\n
\u201cWe see the importance of maintaining stability as a foundation while\nkeeping momentum. This requires close collaboration between government,\npublic, and private sectors. Our SMBC Indonesia Economic Forum serves as\na constructive dialogue space for stakeholders, responding to global\ndynamics, broadening perspectives, reinforcing optimism, and providing\ninsights for future investments,\u201d he added.<\/p>\n
The government has also implemented strategies to sustain economic\ngrowth amid global turbulence, including maintaining a healthy State\nBudget (APBN) with a controlled deficit.<\/p>\n
Acting Director General of Financial Sector Stability and Development\nat the Ministry of Finance, Herman Saheruddin, stated that the ministry\nensures the State Budget acts as a shock absorber, allowing Indonesian\nconsumers to maintain their activities.<\/p>\n
\u201cThe key factors are domestic household consumption, domestic\ninvestment, and government consumption. These domestic factors, with a\npopulation exceeding 200 million, demonstrate our vast potential when\nproperly directed,\u201d he said.<\/p>\n
He further explained that through fiscal functions in the State\nBudget, the government is now more disciplined in timely budget\nimplementation, carefully managing expenditures and timing. This step is\ncritical as it creates multiplier effects on both consumption and\ninvestment.<\/p>\n
Fundamentals of Indonesia Are Strong<\/p>\n
Masyita Crystallin, Head of Economics, Portfolio Alignment, and\nSustainability at Danantara Investment Management, noted Indonesia\u2019s\neconomy is nearing $1.4 trillion, making it the largest in Southeast\nAsia and the fourth-largest emerging market outside China.<\/p>\n
With this, Indonesia has significant potential to sustain and\nstrengthen its economy moving forward.<\/p>\n
\u201cThis is not hope\u2014it is a fact that we have a large economic size.\nHowever, the next question is whether this size can translate into\nproductivity and ultimately economic progress,\u201d Masyita said.<\/p>\n
She added that Indonesia\u2019s economic strength is not only supported by\nnatural resources but also by stable domestic growth. Beyond natural\nresources, she emphasised the importance of human capital\ndevelopment.<\/p>\n
According to her, Indonesia has the demographic dividend privilege\ndue to a larger working-age population compared to non-productive age\ngroups. However, she cautioned this advantage is temporary. Therefore,\njob creation and capital accumulation are key to maximising the\ndemographic dividend and driving long-term economic growth.<\/p>\n
The Importance of Private Sector Support in Strengthening Indonesia\u2019s\nEconomy<\/p>\n
Senior Economist Raden Pardede stated Indonesia cannot rely solely on\nthe State Budget and SOEs but must depend on the private sector, which\nhas a larger engine.<\/p>\n
Therefore, he urged the government to act as a catalyst to support\nprivate sector efforts in boosting the economy. Current conditions allow\nthis, as government budgets are limited, but the private sector,\nbanking, and financial sectors are healthy.<\/p>\n
Pardede stressed that this situation differs from the 1998 financial\ncrisis when the private sector was severely damaged.<\/p>\n
\u201cNow the situation is quite strong, the government is okay, but they\nare limited. So my suggestion is the government\u2026<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/building-optimism-amid-global-uncertainty-1780022618", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }