What Indonesia's Current Economic Policy Lacks? Survey of 85 Economists Provides Insight
JAKARTA, KOMPAS.com — Economic experts are sceptical of the effectiveness of current fiscal policy in supporting economic stability.
A survey by the Institute for Economic and Social Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI) reports that 18 respondents assessed fiscal policy as very ineffective and 34 respondents as ineffective.
“Thus, a total of 52 out of 85 respondents gave negative assessments,” the results of the LPEM Economic Experts Survey for the First Semester 2026 state.
By comparison, 18 respondents assessed fiscal policy as having no meaningful impact. Meanwhile, 13 respondents rated the policy as effective and only 2 respondents rated it as very effective.
“An average score of -0.62 indicates that overall perception still falls on the side of being less effective on the assessment scale,” the report adds.
However, this figure reflects a slight improvement compared with the previous survey, which recorded an average score of -1.05.
In other words, this finding suggests that although expert assessments still tend to be cautious, perceptions of fiscal policy effectiveness show a somewhat more positive trend than previously.
Monetary Policy in Controlling Inflation and Exchange Rates Shows Negative Trend
The same survey shows that economists view the effectiveness of current monetary policy as displaying a more varied pattern compared with other policy areas.
Approximately 35 respondents assessed monetary policy as having no meaningful impact in controlling inflation or managing the rupiah exchange rate. On the other hand, 26 economist respondents rated the policy as ineffective and 4 rated it as very ineffective.
More positive assessments also emerged, with 18 respondents rating monetary policy as effective and 2 respondents rating it as very effective.
“An average score of -0.14 was recorded, which is quite close to the neutral point on the assessment scale. This value shows a considerable improvement compared with the previous survey, when the average score was at -0.66,” the report states.
This change indicates that perceptions of monetary policy performance have become more positive over time.
Respondents also reported a fairly strong level of confidence in their assessments, with an average confidence level of 7.46.
Approximately 11 respondents assessed the policy as very ineffective and 32 respondents as ineffective.
“This means roughly half of all respondents gave clearly unfavourable views,” the report says.
Additionally, 27 respondents believed that the policy had no impact on economic stability and growth.
More positive assessments remain limited, with 14 respondents rating the policy as effective and only 1 respondent rating it as very effective.
The overall average score was recorded at -0.60, indicating a relatively weak evaluation of the existing policy framework.
This value reflects a considerable decline compared with the previous survey, when the average score was at -0.22.
This change indicates that experts’ perceptions of the effectiveness of financial sector policy have become more pessimistic.
Nevertheless, respondents’ confidence level in their assessments remains relatively strong, with an average confidence level of 7.78.