Indonesia Urged to Read Economic Pressures More Clearly and in a Balanced Way

Gerindra Party faction member of the Indonesian House of Representatives, Azis Subekti, has assessed that Indonesia needs to build a clearer perspective in reading the national economic condition. According to him, the current economic situation cannot be simplified as merely good or bad. Azis said that recently, the public sphere has often been split into two extreme viewpoints. Some parties view the weakening rupiah and stock market correction as signs that Indonesia is heading for a crisis. Conversely, others see relatively good economic growth and macro indicators as a sign that there are no serious problems. According to Azis, both views are equally incomplete. “Indonesia is not doing fine in the sense of being without challenges. But Indonesia is also not heading for destruction. What we are facing is a complex situation that requires a clear reading,” said Azis. He explained that Indonesia still has strong economic foundations. Economic growth remains around 5 percent, inflation is relatively under control, the fiscal deficit is still within a safe corridor, foreign exchange reserves are strong, the trade balance has recorded a surplus, and investment grade status is maintained. However, Azis also reminded that economic pressures are real. The rupiah is facing pressure, the Jakarta Composite Index (IHSG) has experienced a correction, some business sectors are slowing down, middle-class consumption is more cautious, logistics costs remain high, and national productivity needs to be strengthened. Azis assessed that these pressures are also influenced by major changes in the global economy. Geopolitical tensions, a slowdown in world trade, energy price uncertainty, high global interest rates, and international capital movements are affecting many developing countries, including Indonesia. He also stressed the importance of reading financial markets more holistically. According to him, the outflow of foreign funds from some Indonesian shares does not automatically mean investors have lost confidence. At the same time, global investors are still buying Indonesian Government Securities and fixed-income instruments. “If investors truly saw Indonesia heading for major problems, they would not only sell shares. They would also leave bonds. But what is happening is not that simple,” said Azis. Furthermore, Azis assessed that the memory of the 1998 crisis still influences how society reads economic pressures. However, he reminded that Indonesia today has changed significantly compared to that crisis period. According to him, the economic structure, banking system, foreign exchange reserves, fiscal capacity, and resilience of national institutions are now much stronger. Azis invited Indonesia to make economic pressures a momentum to improve productivity, strengthen education, enhance institutional quality, improve governance, and accelerate economic transformation. He assessed that Indonesia has great capital to become a developed nation, from natural resources, a large domestic market, a demographic bonus, to a strategic geopolitical position. “The most important question is not whether the Indonesian economy is good or bad. The question is what Indonesia will do about the pressures it is facing,” said Azis. Azis emphasised that Indonesia’s future is not solely determined by the movement of the rupiah, the IHSG, or short-term economic growth figures. The nation’s future, according to him, will be determined more by Indonesia’s ability to read challenges and turn them into energy to leap higher.