Coordinating Minister Airlangga: Indonesia's Economy Remains Strong Amid Global Uncertainty

Jakarta (ANTARA) - Coordinating Minister for the Economy Airlangga Hartarto stated that Indonesia’s economy continues to exhibit strong resilience and room for growth amid global economic uncertainties.

He explained that several national economic indicators remain well-maintained, from economic growth and inflation to domestic consumption and domestic financing structures.

“Our fundamentals remain intact. Economic growth was recorded at 5.11% last year. For 2026, it is targeted at 5.4%,” Airlangga said at the Kick Off for Accelerating Indonesia’s Intermediation (PINISI) event at Bank Indonesia’s Head Office in Jakarta on Monday.

He noted that economic growth in the first quarter of 2026 also has the potential to reach 5.5% or higher.

According to him, inflation remains controlled at 3.48%, while the consumer confidence index stays high at 122.9.

Airlangga added that domestic consumption remains the main pillar of the economy, contributing around 54% to gross domestic product (GDP).

“Domestic consumption remains strong, at 54% of GDP,” he stated.

From an external perspective, he explained that Indonesia’s trade balance has recorded a surplus for 70 months, valued at USD 148.2 billion.

He also conveyed that Indonesia’s foreign debt ratio remains at 29.9% of GDP. Additionally, ownership of government securities (SBN) is dominated by domestic investors at 87.4%, while the foreign portion is 12.6%.

Furthermore, Airlangga said that several international institutions still view Indonesia’s economy as sufficiently strong.

He mentioned that the International Monetary Fund (IMF) regards Indonesia as one of Asia’s bright spots, while the Asian Development Bank (ADB) projects Indonesia’s GDP growth for 2026 at 5.2%.

According to him, Indonesia is also relatively more resilient to global energy shocks related to geopolitical dynamics in the Middle East, as its energy dependence on the region is lower compared to several other Asian countries.

“Several institutions assess the probability of recession in Indonesia as below 5%, which is lower than in other countries such as the United States, Japan, or Canada. The world still sees Indonesia as one of the sufficiently strong economies,” he said.

Airlangga emphasised that the government needs to continue strengthening inter-agency synergy to maintain the momentum of national economic growth.