PEFINDO: Indonesia's Real Economy Remains Solid

Jakarta (ANTARA) - Head of the Economic Research Division/Chief Economist of PT Pemeringkat Efek Indonesia (PEFINDO), Suhindarto, stated that Indonesia’s real economy remains solid.

“If we look at the first quarter of 2026, the realisation experienced accelerated growth compared to the fourth quarter of 2025,” he said during the PEFINDO Media Forum in Jakarta on Wednesday.

Looking at benchmark indicators in the real sector, the consumer confidence index is said to remain in optimistic territory, although it has relatively declined in recent months. Similarly, retail sales have also performed well, and despite experiencing a contraction in the two months following Lebaran, the overall level remains solid.

On the other hand, the weakening on the production or business side, particularly in the manufacturing sector, needs to be watched due to its broad impact. This is considering that the manufacturing sector absorbs a significant number of workers in Indonesia.

“This is visible from Indonesia’s Manufacturing PMI released by S&P Global as of June, which experienced a deep contraction, and if we look at the last three months, conditions have indeed not been expansive,” said Suhindarto.

“So, even though the overall sector condition is still solid, the slowdown in the second quarter needs to be watched,” he said.

Looking at the inflation side, he conveyed that it remains under control, although its movement is heading towards the upper limit of Bank Indonesia’s target range. “But we estimate it will likely remain within the range of 2.5 percent plus or minus 1 percent,” he stated.