Indonesia's economy remains resilient amid global turmoil: government
Spokesperson for the Coordinating Ministry for Economic Affairs Haryo Limanseto said that the government respects public views as input for policymaking.
“We respect public views. The government ensures that Indonesia’s economic fundamentals remain strong and resilient, supported by key factors,” he said in a statement.
He said Indonesia’s economy grew 5.11 percent year-on-year in 2025, relatively high compared to peers, while inflation remained within the target range of 2.5 percent plus or minus 1 percent.
The government continues to maintain stability through inflation control and price stabilization policies.
Household consumption remains the main driver of growth, supported by fiscal stimulus and social assistance programs.
Manufacturing activity also showed strong performance, with the Purchasing Managers’ Index (PMI) at 53.8, remaining in expansion and the highest in two years.
Fiscal resilience is also maintained, supported by solid state budget performance.
As of February 2026, tax revenue grew 30.4 percent year-on-year, driven by tax reforms and digitalization through the Coretax system to strengthen the revenue base and improve compliance.
Food and energy security are also strengthening, he said.
Indonesia has achieved self-sufficiency in several key food commodities and recorded an energy surplus through the biodiesel program.
This condition serves as a buffer against global shocks, including geopolitical conflicts.
The government continues to drive economic transformation through downstreaming, investment, and digitalization, while advancing electric vehicles and renewable energy.
Looking ahead, Haryo said the government expects economic growth of around 5.4 percent in 2026, supported by stability and ongoing structural reforms.
He said the government will maintain a prudent approach in responding to global developments while ensuring economic resilience.
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Translator: Bayu Saputra, Resinta Sulistiyandari