Government Claims Indonesia's Economy is Not in Crisis Amid Global Turmoil: Far from the 1998 Situation

JAKARTA, KOMPAS.com - Coordinating Minister (Menko) for the Economy Airlangga Hartarto has claimed that Indonesia’s economic condition remains robust amid global turbulence. Airlangga stated that the current situation is far from a crisis, differing from what occurred in 1998. Even among G20 countries, Indonesia’s economic growth in 2025 is the second highest after India, at 5.11 per cent. Indonesia’s budget deficit is below 3 per cent, considered low compared to other G20 nations. For comparison, Airlangga cited India’s deficit at 4 per cent, France at 4.4 per cent, and the United States at 6.3 per cent. Meanwhile, Indonesia is projected to grow up to around 5.3 per cent this year. “It is far different from the 1998 situation. In terms of macroeconomics, I say GDP growth is 5.11 per cent. And the projection for this year is above 5.3 per cent. For the first quarter of this year, we are optimistic that Indonesia’s growth will be around 5.5 per cent,” Airlangga said in a statement from the Government Communication Agency (Bakom) on Tuesday (14/4/2026). Airlangga explained that Indonesia’s resilience is supported by a strong domestic economy, as well as food and energy security. In addition, he said, Indonesia under President Prabowo Subianto’s administration has achieved rice self-sufficiency since 2025. Rice production reached 34.7 million tonnes, and Bulog’s stocks stood at 4.6 million tonnes as of 8 April 2026, the highest in history. The state budget functions as a shock absorber for society, with various social assistance provided to the poor. The government has also succeeded in increasing tax revenues. As of March 2026, tax receipts reached Rp 462.7 trillion, or a 14.3 per cent year-on-year growth.