Purbaya Assures Indonesia's Economy Is Far From Recession

Finance Minister Purbaya Yudhi Sadewa has rejected claims by various quarters that Indonesia’s economy is currently heading towards recession.

Speaking at a full cabinet session at the State Palace in Jakarta on Friday, Purbaya stated that various economic indicators actually show a strengthening trend in growth acceleration, one of which is the Purchasing Manager’s Index (PMI) for manufacturing which reached 53.8 in February.

This figure is among the highest in recent years and indicates that the manufacturing sector is in an expansion phase.

“They say we’re already in recession. Some rather peculiar economists claim we’re already in recession, just waiting for it to collapse. Yet if we look at the PMI rising to this high level, and we observe the Mandiri MSI, the Mandiri index, which is now at 360.7 and its trend is rising upward,” Purbaya said.

He explained that the PMI data indicates the production or supply side of the economy is growing strongly. According to him, this also serves as confirmation from institutions outside government that Indonesian economic activity is increasing.

Additionally, several other indicators also show positive trends. Purbaya cited car sales in February 2026 growing 12.2% compared to the same period in the previous year.

Consumer performance is also evident from retail sales growth reaching 6.9% year-on-year. This figure indicates that domestic demand remains strong.

The Finance Minister added that public optimism is also reflected in the consumer confidence index, which stands at level 125.2. This level is considered sufficiently high and reflects growing public confidence in the state of the economy.

“Many people say purchasing power is being hammered. Yes, if people are already struggling, they remain struggling, but we’re looking at the general situation. The general situation is captured in the consumer confidence survey. So, consumer purchasing power is indeed improving,” Purbaya explained.