Purbaya et al Confident Indonesia's Economy Will Continue to Grow Despite Strait of Hormuz Closure

The Ministry of Finance, through Director General of the Economic and Fiscal Strategy (DJSEF) Febrio Kacaribu, is confident that Indonesia’s economy will continue to grow despite disruptions to commodity supply chains resulting from the closure of the Strait of Hormuz amid the conflict between Iran, the United States, and Israel.

Kacaribu stated that the Ministry of Finance will implement a balanced government spending strategy throughout all quarters in order to continue driving national economic growth.

“We want more even economic growth throughout the year, with government spending also more evenly distributed,” said Febrio Kacaribu during the Budget (APBN) Press Conference March 2026 Edition in Jakarta on Wednesday, 11 March 2026.

Kacaribu noted that the Ministry of Finance is also working to realise government spending more quickly, with the expectation that economic growth will be maintained to achieve the target increase of 5.4 per cent year-on-year through to the end of 2026.

Government spending realisation has been recorded at Rp 493.8 trillion, or 12.8 per cent of target, surging 41.9 per cent year-on-year as of 28 February.

“On the revenue side, we have ample capacity to accelerate spending because tax growth is above 30 per cent,” said Febrio.

The Ministry of Finance noted that tax revenue grew 30.4 per cent year-on-year to Rp 245.1 trillion, or 10.4 per cent of target, through to the end of February 2026.

Through this spending acceleration, the Ministry of Finance hopes that economic growth in the first quarter of 2026 will be sufficiently strong, continuing the growth momentum from the fourth quarter of 2025, which reached 5.39 per cent year-on-year.

“With (previous quarter growth of) 5.39 per cent year-on-year, we hope (growth) can reach 5.5 per cent or higher in the first quarter of 2026, and we also hope this economic growth momentum will continue,” he said.