Finance Minister Purbaya Denies Indonesia Heading Towards Economic Recession
Jakarta — Finance Minister Purbaya Yudhi Sadewa has refuted statements from various quarters suggesting that Indonesia’s economy is heading towards recession.
During a plenary cabinet session at the State Palace in Jakarta on Friday, Purbaya stated that various economic indicators actually demonstrate a trend of strengthening and accelerating growth, including the Purchasing Manager’s Index (PMI) for manufacturing, which reached 53.8 in February.
This figure represents one of the highest in recent years and signals that the manufacturing sector is in an expansion phase.
“They say we’re already in recession. Some odd economists claim we’re already in recession, waiting to collapse. But when we look at the PMI rising to high levels, and we look at the Mandiri MSI, the Mandiri index, which is now at 360.7 and its trend is moving upwards,” said Purbaya.
He explained that the PMI data demonstrates that the production or supply side of the economy is growing strongly. According to him, this also serves as confirmation from institutions outside the government that Indonesian economic activity is increasing.
Additionally, several other indicators also show positive trends. Purbaya cited automobile sales in February 2026, which grew 12.2 per cent compared to the same period the previous year.
Consumer performance is also evident from retail sales growth, which reached 6.9 per cent year-on-year. This figure demonstrates that domestic demand remains robust.
The Finance Minister added that public optimism is also reflected in the consumer confidence index, which stood at 125.2. This level is considered sufficiently high and reflects increased public confidence in economic conditions.
“Many people say purchasing power is battered. Well, those facing hardship continue to face hardship, but we’re looking at the overall situation. The general situation is captured by the consumer confidence survey. So indeed, public purchasing power is improving,” Purbaya explained.