DEN stresses maintaining macroeconomic stability amid global uncertainty

The National Economic Council (DEN) has emphasised the importance of maintaining macroeconomic stability in response to uncertain global dynamics.

During a press conference at the Parliament Complex in Jakarta on Monday, the Vice Chair of the DEN, Marie Elka Pangestu, stated that the council was invited by the House of Representatives (DPR) to provide an overview of current economic conditions and to formulate response measures for both global and domestic developments.

According to Pangestu, the most crucial factor is how a nation responds to these conditions, particularly by maintaining short-term macroeconomic stability. “The important thing is how a country responds to that uncertain global situation. I believe a consensus has been reached that the priority is to maintain macroeconomic stability in the short term,” she said.

Pangestu also highlighted the impact of global uncertainty, such as rising oil prices, which affects inflation and public purchasing power. Consequently, she noted that the coordination of fiscal and monetary policies is a key focus of the discussions.

Furthermore, the DEN assesses that Indonesia’s economic fundamentals remain quite strong. However, the greater pressure on the rupiah exchange rate compared to several peer countries remains a specific concern, particularly regarding the maintenance of market confidence.

“In terms of economic fundamentals, Indonesia is quite good, but we are indeed facing a weakening of the rupiah that is more significant than our peers. This means we must remain vigilant and manage issues of confidence and trust,” she remarked.

Pangestu emphasised that strengthening this confidence depends heavily on the policy consistency of the respective authorised technical institutions.