Global Risks Rise, Government Maintains Purchasing Power through Incentives and Energy Prices
The government is strengthening its strategy to maintain public purchasing power amid threats of a global slowdown in 2026, by containing the impact of turbulence through fiscal incentives and energy price stability.
Secretary of the Coordinating Ministry for the Economy, Susiwijono Moegiarso, stated that various policy scenarios have been prepared to respond to global uncertainties triggered by high inflation and geopolitical tensions.
“The government has prepared various scenarios in responding to developments in global uncertainty. All steps are taken carefully to maintain economic stability,” Susiwijono said in an official statement on Friday (1/5/2026).
He explained that geopolitical conflicts, particularly in the Middle East, have triggered volatility in global commodity and financial markets and disrupted supply chains. Nevertheless, Indonesia’s economic conditions are still considered relatively resilient.
To maintain this momentum, the government is taking concrete steps through fiscal incentives, such as exemptions from import duties on strategic raw materials including LPG and plastics, as well as deregulation and accelerated licensing to encourage investment.
On the public side, the government is striving to maintain purchasing power by ensuring that prices of strategic energy remain stable, while also preparing social protection programmes and economic stimuli.
The government has also formed the Task Force for Accelerating Government Programmes to Support Economic Growth Enhancement (Satgas P3-MPPE), involving cross-ministerial and institutional participation.
“Through the Task Force, it is not just about coordinating, but important decisions are also made collectively by considering risks for the national interest,” he explained.
Looking ahead, the government reaffirms its commitment to maintaining economic stability, protecting the public, and ensuring that the business world continues to operate amid challenging global dynamics.