Turbulent World, Purbaya: Indonesia Far from Crisis

Finance Minister Purbaya Yudhi Sadewa has dismissed concerns about the weakening national economy. He instead emphasised that Indonesia’s economy is still in an expansion phase and has the potential to grow up to 6 per cent.

Purbaya stated that this confidence is supported by several economic indicators that continue to show positive trends. He even compared it to market players’ projections, which he assessed as remaining optimistic about Indonesia’s economic performance.

“I asked people outside the government, what is your prediction? 5.7 per cent is possible, they said. In my view, above 5.5 per cent is already good in the current conditions,” Purbaya said at the Ministry of Finance office in Jakarta on Friday (27/3/2026).

According to him, several indicators such as consumer surveys, the Purchasing Managers’ Index (PMI), and motor vehicle sales still indicate expansion. These data serve as signals that economic activity continues to move forward.

“If those indicators do not rise, I cannot say the economy is rising,” he said.

Purbaya also assessed that the public’s purchasing power remains maintained, particularly driven by the Eid al-Fitr momentum that increases mobility and consumption. “Who says crisis? Everywhere is congested, people are shopping. That means purchasing power is still there,” he stressed.

Amid global pressures, especially the rise in world oil prices, the government is said to still be able to dampen the impacts through the State Revenue and Expenditure Budget (APBN).

“We can mitigate the high world oil prices because we absorb it in the APBN,” Purbaya said.

He added that the government is currently focused on keeping economic liquidity adequate and ensuring that state spending is disbursed on time. In addition, improvements to the business climate are continuously being made so that the private sector can move more dynamically.