Indonesia's Economy Remains Resilient Amid Global Turbulence, Coordinating Ministry for the Economy Highlights Indicators

The government assures that Indonesia’s economy remains resilient amid the tumult of global dynamics. Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, emphasised that Indonesia’s macroeconomic stability is well-maintained amidst market volatility and geopolitical tensions. “We will continue to safeguard stability and ensure that policies taken are adaptive to global developments, so that the national economy continues to grow positively and sustainably,” he explained in a written statement received by Kompas.com on Thursday (26/3/2026). Indonesia’s economic growth in 2025 was recorded at 5.11% year-on-year (yoy). This figure is relatively high compared to countries with similar characteristics. Meanwhile, domestic inflation remains within the target corridor of 2.5±1%. The domestic situation is still monitored positively, as seen from domestic demand and the real sector. The indicator is that public consumption continues to be the main pillar of economic growth. This is supported by various fiscal stimuli and social assistance programmes. Manufacturing activity also shows strong performance with a Purchasing Managers Index (PMI) of 53.8, which is in the expansion phase, the highest in the last two years. Fiscal resilience is also maintained with solid performance of the State Revenue and Expenditure Budget (APBN). The increase is supported by tax reforms and the implementation of digitalisation through the Coretax system. These tax reforms and digitalisation implementation continue to strengthen the state revenue base and increase taxpayer compliance. Furthermore, national food and energy resilience is assessed to be increasingly strong. Indonesia has achieved self-sufficiency in several major food commodities and recorded an energy production surplus through the biodiesel programme. This condition serves as an important cushion in facing global turbulence, including the impact of geopolitical conflicts.