Airlangga Hartarto: Indonesia's Economic Fundamentals Remain Strong
Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that Indonesia’s economic fundamentals remain strongly intact amid ongoing global dynamics filled with uncertainty. According to him, the economic growth momentum in the first quarter of 2026 was supported by household consumption, the distribution of holiday allowances (THR), and the acceleration of state expenditure through the realisation of stimulus amounting to Rp809 trillion.
“In the midst of global dynamics that are still full of uncertainty, Indonesia’s economic fundamentals remain solidly maintained,” Airlangga said in an official statement on Thursday, 23 April 2026.
From the investment side, the realisation in the first quarter of 2026 was recorded at Rp498.79 trillion, exceeding the target, with a year-on-year growth of 7.22 per cent. Labour absorption also increased to 706,569 people, up 18.93 per cent year-on-year.
According to Airlangga, these achievements reflect the contribution of investment to job creation and economic equity, including increased investment outside Java Island.
Meanwhile, Bank Indonesia has maintained the BI Rate at 4.75 per cent to safeguard exchange rate stability amid external volatility. The March 2026 Manufacturing PMI Index stood at 50.1, still in the expansion phase. The average PMI throughout the first quarter of 2026 was consistently above 50 and is considered competitive in the ASEAN region.
From the external side, Indonesia’s trade balance has recorded a surplus for 70 consecutive months, with foreign exchange reserves reaching US$148.2 billion. The budget deficit up to March 2026 was recorded at 0.93 per cent of gross domestic product (GDP), which is said to reflect fiscal discipline amid measured expenditure expansion.
The government, Airlangga said, reaffirms its commitment to maintaining Indonesia as a prospective investment destination. Through the Task Force for Accelerating Government Programmes to Support Economic Growth Enhancement (P3M-PPE), established via Presidential Decree Number 4 of 2026, the government seeks to ensure that policies taken have a real impact on ease of doing business, including efforts to remove bottlenecks in investment barriers.
In addition, the government views the adjustment of the Indonesian Standard Classification of Business Fields (KBLI) 2025 as an important part of strengthening the risk-based business licensing system. This adjustment is expected to provide legal certainty, improve licensing efficiency, and encourage national investment competitiveness.
The KBLI 2025 adjustment, set by the Central Statistics Agency, includes updates to accommodate new economic developments, such as the digital economy and artificial intelligence sectors, climate change mitigation, new business models, and strengthening the financial services sector, including bullion banks.
To provide certainty for business actors, Airlangga stated that the government has issued a Joint Circular Letter from the Minister of Investment and Downstreaming/Head of BKPM, the Minister of Law, and the Head of BPS. This circular serves as an operational technical guide in implementing the KBLI code adjustment without harming business interests.
He explained that there are two mechanisms in this adjustment, namely automatic adjustment by the system through integration between the Directorate General of AHU System and OSS, and adjustment carried out by business actors if there are changes in the company’s articles of association.
The World Bank, in its April 2026 publication, has cut its projection for Indonesia’s economic growth in 2026 to 4.7 per cent of gross domestic product (GDP). Previously, in October 2026, the World Bank predicted Indonesia’s economy would grow by 4.8 per cent of GDP.