Qodari: Indonesia's Current Economic Conditions Differ from 1998

Head of the Indonesian Government Communication Body (Bakom) Muhammad Qodari has stated that the country’s economy is currently in a stable condition, rendering concerns about a possible repeat of the 1998 economic crisis unfounded. In a statement received in Jakarta on Tuesday, Qodari explained that various economic indicators show Indonesia’s current situation is vastly different from the period leading up to the 1998 crisis, with the economy now stable and possessing strong fundamentals. “So, actually our fundamental indicators are very strong and that is what makes the situation and conditions today very, very stable,” Qodari said. He referred to conditions in the first quarter of 2026, with Indonesia’s economic growth reaching 5.61 per cent year-on-year. This demonstrates that Indonesia has strong economic fundamentals and is among the highest in the world. On the other hand, Indonesia’s annual inflation rate remains at a manageable level, namely 3.08 per cent. Although it increased compared to April 2026, which was recorded at 2.42 per cent, national inflation is considered stable amidst global economic dynamics. Qodari also highlighted that the government’s debt-to-gross domestic product (GDP) ratio is currently in the range of 40–41 per cent. This figure is still far below the maximum limit of 60 per cent as stipulated in legislation, thus remaining in the safe category. In addition, the condition of Indonesia’s banking sector is also considered much stronger than during the 1998 crisis. He explained that national banks currently have a well-maintained capital adequacy ratio (CAR) capable of supporting financial system stability. “And one thing that is very different from 1998 is that we now have the Deposit Insurance Corporation, so the public can be at ease,” he said. Furthermore, Qodari emphasised that the government continues to move quickly to respond to various global economic dynamics so that the impact on the public can be minimised. One recent step taken is the provision of a soybean subsidy of Rp2,000 per kilogramme for tofu and tempeh producers, in response to the rise in world soybean prices influenced by the weakening of the rupiah exchange rate. “Issues present in the community reach the hands, reach the ears of the President’s aides, and are conveyed to the President,” Qodari said.