To Strengthen Indonesia's Economy, Policymakers Need to Do This!

Jakarta, CNBC Indonesia - Mohammad Faisal, Executive Director of the Center of Reform on Economics (CORE), revealed that the role of policymakers is heavily relied upon in maintaining the economy, particularly amid global economic uncertainties.

As is known, the current global situation is increasingly unfavourable following the US-Iran war. This war is assessed to have multi-sectoral and multi-market impacts. Thus, concrete efforts are needed from stakeholders to ensure the economy remains strong moving forward.

“Synergy and coordination among stakeholders and policymakers are greatly needed; several matters are interconnected, clearly requiring stronger synergy and coordination,” he stated at the Central Banking Forum 2026 held at The Grand Ballroom, Mandarin Oriental Jakarta, on Monday (13/4/2026).

Nevertheless, Faisal noted that policymakers also require support from business actors. This way, policymakers can be more optimistic in safeguarding Indonesia’s economy going forward.

“Business actors are needed to contribute, not just through their efforts, but also by supporting confidence, so that policymaking and the business world can mutually strengthen each other,” he explained.

Faisal himself views Indonesia’s economic condition as still far stronger compared to the 1998 crisis era. The differences in Indonesia’s economic strength now versus the crisis period include the real sector.

According to him, the real sector’s condition in 1998 was very fragile, thus unable to maintain economic growth at that time.

“Some of them include the real sector, fiscal conditions, including the financial sector. The real sector, compared to 1998 and 2020 during the pandemic. In 1998, the real sector was fragile, even though economic growth was high in 1997,” he clarified.

Therefore, he considers strengthening the real sector to be very important. Given that this sector is the main backbone of the economy that directly contributes to GDP formation.

If the current government succeeds in keeping the real sector strong with maintained job creation, Indonesia’s economic resilience is believed to remain solid amid global geopolitical conditions.