Indonesia’s government affirmed Friday that the nation’s economic stability remains strong despite ongoing global uncertainties stemming from geopolitical tensions and financial market fluctuations.
Economic Performance and Key Factors
Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, stated the government values public input in its policymaking processes. He emphasized that Indonesia’s economic fundamentals are resilient, supported by several key factors.
In 2025, Indonesia’s economy experienced a 5.11 percent year-on-year growth rate, which officials noted was relatively high compared to other nations. Inflation was maintained within a target range of 2.5 percent plus or minus 1 percent. The government is actively employing inflation control and price stabilization policies to maintain this stability.
Drivers of Growth and Resilience
Household consumption is currently the primary driver of economic growth, bolstered by fiscal stimulus and social assistance programs. Tax revenue grew by 30.4 percent year-on-year as of February 2026, attributed to tax reforms and the digitalization of systems through the Coretax system.
Indonesia is also strengthening its food and energy security, having achieved self-sufficiency in several key food commodities and recording an energy surplus through its biodiesel program. These developments are intended to serve as a buffer against global shocks, including geopolitical conflicts.
Looking Ahead
The government is focused on economic transformation through downstreaming, investment, and digitalization, with a particular emphasis on advancing electric vehicles and renewable energy. Haryo Limanseto indicated the government anticipates economic growth of around 5.4 percent in 2026, contingent upon continued stability and ongoing structural reforms. A prudent approach to global developments will be maintained to ensure economic resilience.
Frequently Asked Questions
What is driving economic growth in Indonesia?
Household consumption, supported by fiscal stimulus and social assistance programs, is the main driver of growth. Manufacturing activity, with a PMI of 53.8, is also contributing to growth.
How is the government addressing inflation?
The government continues to maintain stability through inflation control and price stabilization policies, keeping inflation within the target range of 2.5 percent plus or minus 1 percent.
What steps is Indonesia taking to strengthen its economy?
The government is focused on economic transformation through downstreaming, investment, and digitalization, whereas also advancing electric vehicles and renewable energy. Tax reforms and digitalization through the Coretax system are also strengthening the revenue base.
As global economic conditions continue to evolve, how might Indonesia balance its growth ambitions with the need for continued economic resilience?
