Global Investors Still Interested in Investing in Indonesia, Airlangga Highlights the Indicators
Jakarta, VIVA – Coordinating Minister for the Economy, Airlangga Hartarto, has assured that global investors still acknowledge the resilience of Indonesia’s economic fundamentals amid escalating geopolitical tensions in the Middle East region.
“Two international recognitions released within less than a week affirm the global market players’ and multilateral institutions’ views on Indonesia’s economic resilience,” Airlangga stated in his remarks on Tuesday, 14 April 2026.
One projection was issued by the Asian Development Bank (ADB), which forecasts stable growth for Indonesia at 5.2% in 2026 and 2027, up from the 5.1% realisation in 2025. This projection is included in the ADB’s April 2026 report titled “The Middle East Conflict Challenges Resilience in Asia and the Pacific”.
In a nearly simultaneous period, the global index agency FTSE Russell on 7 April 2026 maintained Indonesia’s capital market status as a Secondary Emerging Market and did not place Indonesia on the watch list for potential downgrade.
Airlangga emphasised that both signals emerged amid increasing global uncertainty due to the Middle East conflict, energy price volatility, and international trade tensions pressuring several countries in the region.
“Indonesia’s status aligned with China and India in the FTSE classification further affirms the national capital market’s position moving towards global governance and transparency standards,” he said.
It is known that the ADB projects Indonesia’s growth above the Southeast Asia subregional average of 4.7% in 2026. This reflects the strength of the domestic economy compared to other countries in the region.
The institution assesses that sustained strong domestic demand, inflation kept at around 2.5% in line with government targets, and calibrated monetary policy are the main pillars supporting Indonesia’s economic performance.
From the growth drivers’ side, the ADB notes that household consumption remains the primary factor, supported by increased productivity in the agricultural sector and seasonal momentum from Ramadan and Eid al-Fitr.
Additionally, ongoing public infrastructure development and rising private sector investment, particularly in downstreaming, further strengthen growth.
Solid inflows of foreign direct investment are also seen to help external financing while maintaining exchange rate stability. Meanwhile, targeted fiscal policy plays a role in preserving people’s purchasing power and supporting investment. On the other hand, FTSE Russell’s recognition is seen to reflect progress in structural reforms in Indonesia’s capital market.