Luhut Assures Prabowo on Indonesia's Economic Simulation: Still Very Secure

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan yesterday reported the results of an economic simulation for the next three months to President Prabowo Subianto. “Based on the comprehensive simulation we conducted, our economic condition in the next three months remains very secure and stable. Our economic fundamentals are strong,” Luhut stated in a written statement in Jakarta on Wednesday, 22 April 2026, quoted from Antara. Nevertheless, Luhut said, the government is still formulating several anticipatory policy scenarios as mitigation steps if geopolitical tensions last longer than expected. One of the main focuses of the anticipatory measures is to mitigate the potential surge in energy prices, particularly concerning the widening gap between global crude oil prices and domestic fuel prices. DEN, Luhut said, also emphasises the importance of maintaining the supply chain for strategic commodities, such as sulphur, which is crucial for the sustainability of the nickel industry downstreaming programme and the development of the national electric vehicle (EV) battery ecosystem, so as not to be disrupted by global dynamics. Regarding fiscal resilience, the government guarantees that the State Revenue and Expenditure Budget (APBN) remains within a healthy and controlled corridor. The fiscal deficit will be tightly maintained below 3 percent of Gross Domestic Product (GDP), through measured spending efficiency and optimisation of revenue from flagship export commodity sectors, such as coal and palm oil. Luhut asked the public and business community not to worry because the APBN is still very much under control. “The deficit will be kept below 3 percent through appropriate spending efficiency, and maximising the momentum of export commodity prices to strengthen state revenue,” he said. Meanwhile, to maintain growth momentum in the real sector, the government will accelerate deregulation as a non-fiscal stimulus. Luhut emphasised that resolving structural obstacles in the field is a priority so that the licensing process becomes simpler, more efficient, and provides legal certainty for business actors amid a global situation full of dynamics. The government also views this geopolitical situation not merely as a challenge, but as a strategic opportunity. Furthermore, Luhut once again urged the acceleration of government digital transformation (GovTech) and the strengthening of the Indonesia Financial Center development initiative to capture the potential shift in global capital flows. “We are not just talking about surviving, but how to take advantage of this situation. Accelerating GovTech and building the Indonesia Financial Center are our strategic steps to leverage the shift in global capital flows,” he said. With solid collaboration between the government and the business world, Luhut is optimistic that this momentum can be made a catalyst for national progress.