Jakarta \u2014 The government has assured the public that Indonesia\u2019s\neconomic condition remains sound despite economic disturbances caused by\nthe United States-Israel-Iran conflict.<\/p>\n
The conflict has driven crude oil prices above $100 per barrel,\nraising concerns about potential global inflation, declining purchasing\npower, and economic crisis.<\/p>\n
However, Coordinating Minister for Economic Affairs Airlangga\nHartarto explained that macroeconomic indicators demonstrate that\nIndonesia remains robust.<\/p>\n
Regarding consumer purchasing power, Hartarto noted that domestic\nconsumption and the Mandiri Spending Index remain at healthy levels.\n\u201cOur domestic consumption remains strong at 54% of GDP, and the Mandiri\nSpending Index has reached 360.7, which is high. When we look at markets\nor shopping malls, they are busy, and discount programmes in Indonesia\ncontinue to run. Furthermore, holiday bonuses have already been\ndistributed, so consumer purchasing power appears solid,\u201d he told media\nat the Coordinating Ministry for Economic Affairs office in Jakarta on\nMonday, 16 March 2026.<\/p>\n
He emphasised that state debt stands at 40% of GDP, below the safe\nthreshold of 60%. \u201cForeign debt accounts for 29.9%, and domestic debt\nfor approximately 10%, so our total debt is 40%,\u201d he said.<\/p>\n
Hartarto also noted that Indonesia\u2019s foreign exchange reserves remain\nsufficient to cover six months of imports. The manufacturing index was\ndescribed as being at a high position of 53.8, indicating strong\nbusiness confidence among manufacturing enterprises.<\/p>\n
\u201cThe manufacturing sector is also performing well at 53.8. This is\nactually an all-time high, the highest level. This means manufacturers\nare optimistic with various agreements being signed, so they have high\nconfidence in what the government is implementing,\u201d said the\nCoordinating Minister.<\/p>\n
Hartarto stated that the state budget (APBN) is functioning\neffectively as a shock absorber during the current global economic\nturbulence, through food assistance totalling 11.92 trillion rupiahs and\nthe distribution of holiday bonuses to civil servants, military, and\npolice, as well as transportation and fuel subsidies.<\/p>\n
\u201cTax revenues per February grew strongly by 30.4 percent. This is\nalso a good achievement, and the APBN deficit is controlled at 0.53\npercent of GDP. In other words, macroeconomically, despite the wartime\ncrisis situation, we remain strong and solid,\u201d Hartarto added.<\/p>\n
With what he regards as solid internal conditions, Hartarto remains\nconfident that Indonesia\u2019s economic growth can reach 5.5% in 2026. \u201cWith\nthese figures, we are quite optimistic that growth could be around\n5.5%.\u201d<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/war-concerns-eased-as-indonesias-economic-condition-remains-solid-1773672774", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }