Finance Minister Purbaya Relieved as Resilient Indonesian Economy Passes Global Stress Test
Finance Minister Purbaya Yudhi Sadewa admitted he initially felt anxious seeing various complaints about the economy widely discussed on social media amid high global uncertainty. However, after scrutinising a number of the latest economic indicators, he said he was relieved because the data shows the Indonesian economy remains quite resilient and has managed to withstand pressures from global turmoil.
In a working meeting with Committee IV of the Regional Representative Council (DPD RI) held online on Monday (22/6), Purbaya said the global economy is still overshadowed by uncertainty, although pressures have begun to ease over the past week. According to him, the increasingly open opportunity for peace between the United States and Iran has helped reduce volatility and uncertainty in global financial markets. Amid these conditions, almost all countries face economic pressures, but Indonesia’s performance is considered relatively better compared to a number of peer nations.
“Alhamdulillah, amid global uncertainty, the Indonesian economy continues to show resilience,” Purbaya said.
He explained that the national economy’s resilience is reflected in first-quarter 2026 growth reaching 5.61%, inflation remaining under control at 3.08%, and a trade surplus recorded for seven consecutive months through April 2026. In addition, foreign exchange reserves are deemed adequate, equivalent to 5.6 months of imports, while bank lending grew at a double-digit pace with strong liquidity.
Purbaya noted that national bank credit grew 11.51% year-on-year in May 2026. According to him, this data proves that real economic activity is still running well. “So these figures are not made up by the government; they are data from the banks. Strong economic growth shows there is genuine improvement in the economy,” he stressed.
Furthermore, the manufacturing sector has returned to expansionary territory, with the Purchasing Managers’ Index (PMI) touching the 50 level again. He assessed that the upward reversal in the PMI trend is a positive signal for national industrial activity. Meanwhile, domestic economic activity is also showing improvement, reflected in still-strong public consumption, with the Consumer Confidence Index rising to 123 in April 2026. This increase indicates an improvement in people’s purchasing power, which supported economic growth at the start of this year.
Purbaya added that various other economic indicators also show a positive trend. Electricity sales were still growing in April 2026, while car and motorcycle sales increased significantly after the Lebaran holiday period. Car sales were recorded to have grown by around 55%, while motorcycle sales rose by 28.1%.
“I was also anxious earlier, wondering whether the complaints voiced on many social media platforms were well-founded. When we saw the numbers growing, I felt somewhat relieved; it means things are not as bad as expected,” Purbaya said.
Another indicator that strengthened the government’s optimism was domestic cement consumption, which grew 35.6% year-on-year in April 2026. According to him, this figure is in line with ongoing investment activity. Meanwhile, the manufacturing sector, which had previously weakened, is now starting to show improvement.
“So it is not just from the gross domestic product (GDP) figures; the non-GDP figures I use to check our economic growth also seem to remain quite strong. I was worried it would drop sharply in the second month, but from this I am somewhat relieved; it turns out to be quite strong,” Purbaya said.
He also highlighted that credit growth remained in the double-digit range through April and May 2026. According to him, this shows that real economic activity is still taking place and serves as evidence that the national economy continues to move amid various global challenges.
In the financial sector, he acknowledged that the market had faced pressures in recent months. However, solid coordination between fiscal, monetary, and financial sector policies is considered to have successfully maintained stability. This condition is reflected in the strengthening of the rupiah exchange rate, a rebound in the stock market, a decline in bond yields, and the return of foreign capital inflows, indicating increased market confidence.
Purbaya hopes that the opportunity for peace between the United States and Iran can further strengthen global economic stability. If world oil prices decline, pressure on energy costs and domestic inflation will also ease, allowing the economic growth momentum to strengthen further.
“But that has already caused a commotion,” he remarked when touching on the impact of the Pertamax price increase due to the surge in world oil prices some time ago.
Nevertheless, he is optimistic that a decline in world oil prices going forward will strengthen the foundation of Indonesia’s economic growth. According to him, the global turmoil that occurred was a severe test for the national economy, but various indicators show that Indonesia has successfully passed it.
“From the data we are seeing now, it seems we have already passed that test period,” Purbaya stressed.
He added that the current economic conditions are indeed not yet ideal. However, the various mitigation measures taken by the government are considered to have successfully kept economic growth positive amid global pressures. With the prospect of an improving geopolitical situation and lower energy prices, Purbaya hopes that Indonesia’s economic performance in the second half of 2026 can grow even stronger.