Odysseus and the Journey Home Towards Prosperity
The Odyssey, Christopher Nolan’s film, elevates Homer’s classic epic regarding King Odysseus’s journey home to Ithaca. During his long voyage, he was beset by storms, lost, and faced various temptations that constantly tested his direction and resolve.
One of the greatest tests came from the Sirens’ song, which could enchant and mislead sailors. To avoid surrendering to momentary temptation, Odysseus had himself tied to the mast of the ship. He deliberately limited himself so that the ship would continue moving towards its destination.
This tale is relevant to development. Moving does not always mean getting closer to the goal; economic growth is not always synonymous with prosperity. True progress is measured not only by how fast the economy grows, but also by the extent to which that growth enhances societal welfare.
Finding the direction towards prosperity
Amidst global uncertainty, Indonesia remains optimistic. BPS (Statistics Indonesia) recorded economic growth of 5.29 per cent annually in the second quarter of 2026, while growth throughout the first half of 2026 reached 5.45 per cent. This achievement demonstrates domestic economic resilience amidst a challenging strategic environment.
Household consumption, which accounts for 53.32 per cent of GDP, grew by 5.06 per cent and contributed 2.67 per cent to economic growth. Gross Fixed Capital Formation (PMTB) grew by 6.87 per cent with a contribution of 2.06 per cent, while government consumption increased by 15.97 per cent in line with the realisation of several strategic projects. Although the momentum was more moderate compared to the previous quarter, the composition shows that consumption and investment remain vital pillars of economic resilience.
In terms of business sectors, the manufacturing industry was the largest contributor to GDP with an 18.50 per’cent share, growing 4.52 per cent annually. This performance aligns with the increase in the Business Condition Index and Manufacturing Prospects to a level of 52.31, indicating that manufacturing activity remains in the expansion zone. Growth momentum was also bolstered by the trade and construction sectors, which grew by 6.39 per cent and 6.68 per cent annually, respectively.
However, this development in business activities has not been fully followed by a strengthening of labour absorption. This is reflected in the manufacturing labour index, which sits slightly below the threshold of optimism at 49.92. In May 2026, the number of employed persons reached 148.19 million, an increase of only 522,000 compared to February 2026. This development shows that the expansion of business activities has not yet been fully translated into the creation of new job opportunities on an adequate scale.
Although the Open Unemployment Rate decreased to 4.65 per cent, the underemployment rate was still recorded at 7.28 per decile, a slight increase from February 2026. This condition indicates that labour market improvements have not optimally addressed the adequacy of working hours and job quality. At the same time, the poverty line increased by 9.86 per cent in a year to Rp669,235 per capita per month. Approximately 74.70 per cent of this poverty line is derived from food requirements.
Thus, increasing prosperity cannot rely solely on an increasing number of employed people, but also requires more productive jobs and food price stability so that rising incomes are not eroded by the increasing cost of living.
Maintaining prices, maintaining development goals
The direction towards prosperity is determined by the ability to maintain purchasing power. High inflation can suppress real income and is most heavily felt by vulnerable groups, as the largest portion of their expenditure is used for basic necessities.
In July 2026, Indonesia experienced a monthly deflation of 0.14 per cent. Annual inflation fell from 3.34 per cent to 2.88 per cent, remaining within the target of 2.5±1 per cent. Core inflation was recorded at 2.76 per cent annually, while volatile food prices experienced a monthly deflation of 1.68 per cent due to increased supplies of shallots and chillies from production centres.
This achievement was supported by the consistency of Bank Indonesia’s monetary policy and synergy in inflation control with the government through TPIP and TPID. The strengthening of food security and the ‘Prosperous Food and Inflation Control Movement’ also helped maintain supply. Price stability does not arise from a single instrument, but from the coordinated management of demand, supply, distribution, and expectations.
Similar work is underway in East Priangan through the ‘4K’ strategy: affordability, availability, smooth distribution, and effective communication. This strategy is reinforced through cheap food movements, market operations, inter-regional cooperation, and SINDANG PRIATIM, an artificial intelligence-based early warning system.
In July 2026, Tasikmalaya City recorded a monthly deflation of 0.03 per cent, with calendar year inflation at 1.22 per cent and annual inflation at 2.44 per cent. Decreases in the prices of chicken eggs, bird’s eye chillies, oranges, and cooking oil helped mitigate pressure. This development demonstrates the importance of maintaining supply while carefully monitoring the sources of price changes.
In general, both national and Tasikmalaya City inflation remained controlled and within the target range. Much like Odysseus finally arriving in Ithaca, success is not determined by always calm seas, but by the ability to maintain direction amidst changing currents and waves.
Similarly, Bank Indonesia’s consistency in maintaining price stability is a vital part of the journey towards development goals. Because when prices remain controlled, purchasing power is preserved, vulnerable groups are protected, and economic growth can be translated into more tangible prosperity for the people. That is where price stability finds its meaning: not merely maintaining inflation figures, but ensuring that the journey of development remains directed towards a more prosperous life.