Government Responds Positively to ADB and FTSE Russell Assessments
The Coordinating Ministry for Economic Affairs claims that two recognitions from international institutions, issued in close proximity, have affirmed the resilience of Indonesia’s economy amid rising global geopolitical tensions and the impact of Middle East conflicts on the world economy. The two international institutions are the Asian Development Bank (ADB) and the global index provider FTSE Russell.
Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, stated that the ADB report in the Asian Development Outlook April 2026 projects Indonesia’s economy to grow steadily at 5.2% in 2026 and 2027, up from the 5.1% realisation in 2025.
In addition, FTSE Russell decided on 7 April 2026 to maintain Indonesia’s capital market status as a Secondary Emerging Market. “And it stated that it does not consider Indonesia for inclusion in the watchlist for status downgrade,” he said in an official statement on Tuesday, 14 April 2026.
According to Haryo, these two signals emerge amid global uncertainties due to conflicts in the Middle East, energy price volatility, and international trade tensions that pressure several countries in the region. The ADB’s projection for Indonesia is based on the assumption of early stabilisation of those conflicts and is above the subregional Southeast Asia projection of 4.7% in 2026.
The ADB assesses that the strength of domestic demand, controlled inflation around 2.5% in line with government targets, and calibrated monetary policies are three differentiating factors in Indonesia’s performance compared to peer countries in the region.
From the perspective of economic growth drivers, the ADB notes the strengthening of household consumption in early 2026, supported by increased agricultural productivity as well as seasonal effects from Ramadan and Eid al-Fitr. Ongoing public infrastructure development and increasing private sector participation in downstream investments are also seen as supporting economic momentum.
Solid inflows of foreign direct investment are said to help finance external gaps while maintaining exchange rate stability. Directed fiscal policies are also assessed to maintain household purchasing power and investment momentum. Meanwhile, FTSE Russell’s decision is said to reflect progress in structural reforms of the capital market that are being implemented.
The institution noted the implementation of eight action plans to accelerate capital market integrity reforms, including increased transparency in share ownership, expansion of investor classifications to 39 categories, setting a minimum free float of 15%, and the application of the High Shareholding Concentration (HSC) mechanism as an early warning for investors.
FTSE Russell, Haryo said, also places Indonesia in a classification equivalent to China and India. The Financial Services Authority (OJK) welcomes this assessment as evidence that capital market reforms are showing positive and credible progress in the eyes of global index providers. OJK calls this result a reflection of the consistency of efforts to improve governance and transparency in the market.
Furthermore, the government views these two recognitions as validation of the direction of macroeconomic policies being implemented, namely maintaining domestic demand, strengthening fiscal foundations, maintaining monetary credibility, and continuing structural reforms in the financial markets.
The government also expresses its commitment to continue accelerating reforms ahead of the quarterly FTSE Russell review in June 2026 and the MSCI review in May 2026, with the aim of ensuring inclusive, sustainable growth that is resilient to external shocks.