Airlangga Optimistic that First-Quarter Growth Will Reach 5.5 Percent

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia continues to demonstrate resilience in the first quarter of 2026. This is reflected in the Consumer Confidence Index (IKK) at 125.2, which is at an optimistic level, and foreign exchange reserves of US$151.9 billion, equivalent to six months of imports.

“The government still sees economic growth in the first quarter as good, still able to reach or exceed 5.5 percent,” said Airlangga in a written statement on Thursday, 9 April 2026.

From a financial perspective, Airlangga noted that the government continues to coordinate with Bank Indonesia through triple intervention policies in the domestic spot market and non-delivery forwards to maintain rupiah exchange rate stability. He also mentioned that the BI Rate reference interest rate is maintained at 4.75 percent.

According to him, President Prabowo Subianto has directed the continuation of bilateral currency swap cooperation with several countries, namely China, Japan, Australia, Singapore, Malaysia, and South Korea, and its expansion to other countries.

In the energy and transportation sector, Airlangga mentioned the adjustment of avtur (aviation turbine fuel) prices through the implementation of VAT, with 11 percent borne by the government for two months. This policy, he said, holds domestic flight ticket price increases to around 9 to 13 percent.

According to him, the impact of avtur price increases on Hajj transportation costs is borne by the government so as not to add to the expenses for around 220,000 pilgrims. A budget of Rp1.77 trillion is said to be allocated from the state budget to cover this impact.