Government Claims Indonesia's Economic Fundamentals Remain Strong
The Coordinating Ministry for Economic Affairs has responded to the results of a survey by the Institute for Economic and Social Research at the Faculty of Economics and Business, University of Indonesia (LPEM FEB UI), which showed that 48% of economists assess Indonesia’s economy as deteriorating. Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, stated that the government respects the survey results as part of public input and perceptions.
“However, we need to add that Indonesia’s economic fundamentals are currently still strong and resilient, supported by several key factors,” Haryo told Tempo on Monday, 23 March 2026.
Firstly, he said, macroeconomic stability remains maintained. This is reflected in Indonesia’s economic growth of 5.11% year-on-year in 2025. Haryo also mentioned that inflation remains within the target corridor of 2.5% plus or minus 1%, despite short-term pressures addressed through inflation control and price stabilisation.
Secondly, Haryo said domestic demand and the real sector remain strong. He explained that public consumption continues to be the main pillar, driven by fiscal stimuli and social assistance. This is supported by expansive manufacturing activity, as reflected in a Purchasing Managers’ Index of 53.8, the highest level in the last two years.
Thirdly, according to Haryo, fiscal resilience is maintained. He stated that the state budget performance remains solid, with tax receipts growing 30.4% year-on-year up to February 2026. “Tax reforms and digitalisation (Coretax) continue to strengthen the revenue base and improve compliance,” he said.
Fourthly, Haryo mentioned that food and energy resilience is strengthening. According to him, Indonesia has achieved food self-sufficiency for several major commodities, as well as an energy production surplus through the biodiesel programme. Fifthly, Haryo said economic transformation is ongoing. The government, he stated, continues to promote downstreaming, investment, and digitalisation as new sources of growth.
Previously, based on the Semester I 2026 Economist Survey released by LPEM, 41 out of 85 economists, or 48%, assessed the current state of Indonesia’s economy as worse than the previous quarter.
“This result is still consistent with perceptions from previous surveys in October and March 2025, indicating that after three consecutive surveys over 18 months, experts still believe that Indonesia’s economic conditions have not improved,” the LPEM UI team wrote in its report, quoted on Sunday, 15 March 2026.
In detail, 35 economists answered that the economic condition is worse and 6 answered much worse. Meanwhile, 32 economists answered that the condition is unchanged compared to three months ago. The remaining 12 economists answered that the condition is better compared to three months ago.