Economic Council Reports to President: Fundamentals Far Stronger Than 1998 Crisis, But...

The National Economic Council (DEN) submitted a report on the current state of Indonesia’s economic fundamentals to President Prabowo Subianto at the Presidential Palace on Tuesday (9/6/2026). DEN member Mochamad Firman Hidayat claimed that Indonesia’s current economic fundamentals are far stronger than they were during the 1998 crisis. “We from the National Economic Council conveyed to the President the current economic situation. Perhaps the first thing we conveyed to the President is that our economic fundamentals are in good condition,” Firman said. “They are even far better compared to the conditions during the 1998 crisis. In addition to macro indicators such as still high growth and stable inflation, one of the things we highlighted is that corporate balance sheets are in a very healthy position,” he stressed. Nonetheless, he assessed that the government needs to be wary of global economic uncertainty. According to a DEN study, the impact of ongoing wars appears to be greater and longer-lasting than the council’s initial estimates. The DEN also conveyed the need for the government to be vigilant regarding the weakening of the rupiah. The rupiah’s depreciation, coupled with rising global energy prices, risks triggering an increase in the prices of goods. This will drive up inflation. “The impact of this war, with the rise in global energy prices and the subsequent weakening of the rupiah, could impact increases in production and distribution costs,” he said. He presented data showing that while the Consumer Price Index (CPI) inflation is still around 3%, the Wholesale Price Index (WPI), which measures the production costs of goods, has seen inflation reach 5%-7%. “And this is what needs to be anticipated later in the second semester, but I think the government has already prepared steps to address it,” he affirmed.