Purbaya Confident Indonesia's Economy Will Reach 5.7% in First Quarter, Here’s Why

Consumer purchasing power is believed to have been maintained during the Ramadan period. This was stated by Finance Minister Purbaya Yudhi Sadewa. He is also optimistic that economic growth in the first quarter of 2026 will reach 5.7%. “The latest figure for economic growth could be 5.6–5.7%,” he told reporters at the Directorate General of Taxation office, Ministry of Finance, Jakarta, on Saturday, 21 March 2026. Purbaya noted that this projection is relatively good considering the current global economy impacted by the dynamics of the Iran, United States, and Israel conflict. He placed an optimistic figure because he believes the impact of global turmoil has not yet been felt in the domestic economy. According to him, the domestic economy remains stable thanks to various mitigation steps taken by the government. “The global impact here is still not felt because it has been absorbed by the government. So, we are ensuring that people can carry out normal activities in the current situation. As much as possible, this will be maintained going forward,” he said. The state treasurer also remains optimistic about the economic prospects after Eid al-Fitr. The national economy, he said, could slow down if geopolitical tensions continue to escalate. However, Purbaya stated that he will continue to strengthen domestic demand to keep the domestic economy stable. The steps to be taken include support for the private sector, maintaining consumer purchasing power, managing subsidised fuel oil (BBM) prices from the impact of global oil prices, and encouraging government spending to be absorbed on time. “Even though the global situation is like that, domestic demand is still strong. It might slow down if (the conflict) keeps rising. But I will maintain domestic demand,” he said. Overall, he assesses that the national economy is relatively stable, as seen in various economic indicators and his field reviews during Ramadan.