Purbaya: Indonesia's Economy Far from Deteriorating
Finance Minister Purbaya Yudhi Sadewa reported to President Prabowo Subianto that Indonesia’s economic condition is sound. He stated that this was reflected in several data points from February 2026 showing accelerating economic activity.
“So we are far from what economists outside call a deteriorating economy, Sir. Many people on TikTok talk like that,” Purbaya said during a cabinet session at the State Palace on Friday, 13 March 2026, monitored from the President’s Secretariat YouTube broadcast.
One key data point presented by Purbaya was the Purchasing Managers’ Index (PMI) for February, which reached 53.8. He stated this was the highest position in recent years and indicated strong manufacturing sector growth.
Purbaya also attributed the high inflation figure in February to electricity tariff discounts from the previous year. According to data from the Central Statistics Agency, February inflation reached 4.76 per cent year-on-year. Purbaya claimed that without last year’s subsidies, February inflation would have been only approximately 2.59 per cent. Therefore, he said, the economy is not overheating and is safe to grow at higher levels.
The State Treasurer also reported data from the automotive industry. He noted that automobile sales grew 12.2 per cent in February 2026. “This is no joke, if we look at last year it was negative, Sir. Now it has started to turn positive and is accelerating,” Purbaya said.
Purbaya also highlighted the Consumer Confidence Index, which stood at 125.2 in February 2026. According to him, this position showed that consumer purchasing power was improving and the public was not in dire straits.
Meanwhile, a survey by the Institute for Economic and Social Research at the Faculty of Economics and Business, University of Indonesia (LPEM FEB UI), revealed that 41 out of 85 economists (48 per cent) assessed that Indonesia’s economic condition had deteriorated compared to the previous quarter.
Breaking this down, 35 economists answered that economic conditions were worse and 6 answered that they were far worse. Whilst 32 economists answered that conditions remained unchanged compared to three months earlier. The remaining 12 economists said conditions had improved compared to three months previously.
“This result remains consistent with the perception from previous surveys in October and March 2025, showing that after three consecutive surveys over an 18-month period, experts still believe that Indonesia’s economic conditions have not improved,” the LPEM UI team wrote in their report, cited on Sunday, 15 March 2026.