Global Turmoil: Prabowo's Aide Reveals Strategies to Overcome It
The government has reaffirmed its commitment to safeguarding national economic stability amid rising global uncertainties, by bolstering domestic fundamentals and maintaining policy discipline.
Bappenas Deputy for Macro Development Planning, Eka Chandra Buana, stated that global dynamics, including geopolitical tensions and financial market volatility, present unavoidable challenges. However, the government has prepared measured anticipatory steps.
“Indeed, all this very much depends on assumptions, such as how long the conflict lasts. But we already have contingency plans and preparations to face various scenarios,” Eka said at the Prasasti Luncheon Talk on Wednesday (22/4/2026).
Attending the event were the Prasasti Board of Advisors and Presidential Special Envoy for Climate and Energy, Hashim Djojohadikusumo; Prasasti Board of Advisors and former Bank Indonesia Governor, Burhanuddin Abdullah; former Indonesian Foreign Minister, Hassan Wirajuda; and hundreds of officials, former officials, and executives from various companies in Indonesia.
In his presentation, Eka Chandra outlined that geopolitical impacts risk affecting the Indonesian economy through transmission channels such as increased inflation rates, exchange rate depreciation, higher budget needs for energy subsidies, and pressure on economic growth targets.
Nevertheless, the government emphasised that it will not sacrifice fiscal discipline. Eka stressed that there are no plans to widen the budget deficit, which will remain within safe limits. “To date, there is no intention to widen the deficit. Instead, what we are pushing for is how spending can become more productive and have a multiplier effect on the national economy,” he asserted.
In the medium term, the government is maintaining its economic growth target of up to 8% by 2029, as stated in the National Medium-Term Development Plan (RPJMN). This target has not been lowered, despite increasing global pressures.
“The question is not whether the target is lowered, but how our policies are strengthened to still achieve that target,” Eka said.
He added that the government’s approach is not solely focused on short-term programmes, but also on building a stronger and more sustainable economic ecosystem. “It’s not just about delivering output, but how we build the ecosystem—from supply chains, industries, to system resilience,” he explained.
According to him, from a fundamental perspective, Indonesia’s current economic condition is still solid. Household consumption remains stable, the banking sector is steady with a non-performing loan ratio of around 2.17% and credit growth of 9.4% (year-on-year), and adequate liquidity. On the external side, foreign exchange reserves stand at US$148.2 billion, equivalent to 6 months of imports, while the current account transaction remains controlled at around 0.1% of GDP.
Additionally, the real sector and fiscal aspects also show resilience, with the state budget deficit remaining low at about 0.93% of GDP, supported by industrial growth and manufactured exports. The digital economy is also becoming a new driver with significant transaction growth.
“Our fundamentals are strong. Economic indicators show positive performance, and this is our main capital,” Eka said.
The government also acknowledges there is still room for improvement. Evaluations of flagship programmes are continuously conducted to ensure all policies run effectively.
“All our flagship programmes are evaluated and improved, so they remain on the right track,” he said.
To respond to global conditions, the government is preparing a combination of short-term and medium-term policies. In the short term, the focus is on accelerating National Strategic Projects (PSN), optimising state spending, and operational efficiency. Meanwhile, in the medium term, the government is promoting energy diversification, accelerating energy transition, and strengthening the domestic industrial structure.
“These steps are prepared so that the economy remains resilient, both in the short and medium term,” Eka said.