Finance Minister Reports to Prabowo: Indonesian Economy Far From Crisis

Jakarta — Finance Minister Purbaya Yudhi Sadewa briefed President Prabowo Subianto on Friday (13 March 2026) during a full Cabinet meeting at the State Palace that Indonesia’s economy is far from the crisis conditions some economists and social media commentators have described.

“We are far from what some economists outside call an economy in crisis, and there is plenty of talk like that on TikTok,” Purbaya said.

According to the Finance Minister, recent figures show improvements in the manufacturing sector with rapidly increasing supply. “This data comes not from the Central Statistics Agency (BPS) but from other sources confirming our economy is indeed growing,” Purbaya stated.

February inflation reached 4.64 per cent, appearing high due to year-on-year comparison. Last year, the government implemented temporary electricity subsidies that were not maintained this year, artificially inflating the comparison. Removing the electricity subsidy impact from January-February 2025 data shows the national inflation rate at just 2.59 per cent.

“We remain safe to accelerate growth further; the economy is not overheating. There is no reason for others to slow economic growth,” Purbaya said.

Indonesia’s Purchasing Managers’ Index reached record levels, with the Mandiri Spending Index standing at 360.7. Vehicle sales rose 12.2 per cent in February, positively impacting the automotive industry, whilst retail sales increased to 6.9 per cent, substantially higher than the previous year.

Purbaya dismissed economists who suggest Indonesia’s economy is in dire straits as odd. “Those odd-sounding economists claim we are in recession, on the verge of collapse,” he said.