Luhut Reports DEN Simulation Results to Prabowo: Indonesia's Economy Stable for Next Three Months
Jakarta, VIVA – Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan reported to President Prabowo Subianto regarding the economic simulation conducted by his team. The results show that the national economy is projected to remain stable in the next three months.
Nevertheless, in line with the President’s directives, the government has formulated various anticipatory policy scenarios as mitigation steps should geopolitical tensions last longer than anticipated.
“Based on the comprehensive simulation we conducted, our economic conditions in the next three months are still very safe and maintained. Our economic fundamentals are strong,” Luhut said in a written statement in Jakarta on Wednesday, 22 April 2026.
He explained that one of the main focuses of these anticipatory measures is to mitigate the potential surge in energy prices, particularly regarding the widening gap between global crude oil prices and domestic fuel prices.
The DEN also emphasised 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.
From the fiscal resilience perspective, 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 revenues from flagship export commodity sectors, such as coal and palm oil.
“The public and business community need not worry, 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 revenues,” he stated.
To maintain growth momentum in the real sector, the government will accelerate deregulation as a non-fiscal stimulus. Addressing structural barriers in the field is a priority to make the licensing process simpler, more efficient, and provide legal certainty for business actors amid a global situation full of dynamics.
Furthermore, the government views this geopolitical situation not merely as a challenge, but as a strategic opportunity. He also claimed to be continuously pushing for the acceleration of government digital transformation (GovTech) and strengthening the Indonesia Financial Center development initiative to capture the potential shift in global capital flows.