Analyst Reveals Indonesia is Stronger than During the Crisis Era
Jakarta, CNBC Indonesia - Mohammad Faisal, Executive Director of the Center of Reform on Economics (CORE), speaks candidly about Indonesia’s current condition. He observes that Indonesia’s economy is still far stronger than during the 1998 crisis.
The differences in Indonesia’s economic strength now compared to the crisis era lie in the real sector, among others. According to him, the real sector’s condition in 1998 was very fragile, unable to sustain economic growth at that time.
“Some of them include the real sector, fiscal conditions, and the financial sector. The real sector, compared to 1998 and 2020 during the pandemic, was fragile in 1998, even though economic growth was high in 1997,” he said at the Central Banking Forum 2026 at The Grand Ballroom, Mandarin Oriental Jakarta, on Monday (13/4/2026).
The strengthening of the real sector itself is considered very important. This is because the sector serves as the main backbone of the economy, directly contributing to GDP formation.
If the current government succeeds in keeping the real sector strong with sustained job creation, Indonesia’s economic resilience will remain solid amid global geopolitical conditions.
He also notes that in recent times, there have been indications of rising retail sales over the last five months of 2025 and into the first three months of 2026.
“During the 2020 COVID period, the real sector was strong. But after COVID, there was significant weakening in the real sector; this is what we must reverse,” he explained.
Secondly, he continues regarding fiscal matters. He acknowledges that Indonesia’s debt levels and those of other countries remain high post-pandemic. Therefore, he hopes the government can manage it well, or keep the fiscal deficit no more than 3% to maintain market confidence.
“What differentiates is the institutional aspect and the financial sector. Currently, it is far better, so resilience and anticipation are much improved now,” he concluded.