Jakarta – Amidst the current global turmoil caused by geopolitical conflicts, inflationary pressures, and financial market uncertainty, the Indonesian economy is actually showing relative stability. Several macroeconomic indicators show that the national economic fundamentals remain strong enough to cushion the impact of external shocks.
Minister of Finance (Menkeu) Purbaya Yudhi Sadewa emphasized that Indonesia’s fiscal condition is still on a safe track.
“Inflation remains relatively under control. The state budget deficit is kept below 3 percent of GDP. This means our economic fundamentals remain strong,” he said.
This signals that the government is still able to maintain a balance between state spending and economic stability. According to Purbaya, controlling inflation is a key factor in maintaining public purchasing power amid global pressures.
In addition, fiscal discipline is also continuously maintained to prevent long-term risks to the national economy.
“Inflation remains relatively under control. The state budget deficit is kept below 3 percent of GDP. This means our economic fundamentals remain strong,” he continued.
This stability is not only visible from the government’s perspective, but has also attracted attention from economists. Economic observer Dr. Surya Vandiantara assesses that Indonesia’s current economic condition remains in a fairly solid phase.
According to data from the Central Statistics Agency (BPS), annual inflation (year-on-year/yoy) in March 2026 was recorded at 3.48 percent. According to Surya, this figure is significantly lower than the 77.63 percent inflation during the 1998 economic crisis.
“The difference is very significant, reaching more than 70 percent. This indicates that the current economic conditions are relatively stable,” Surya said.
Besides inflation, he also highlighted the state budget deficit, which reached IDR 240.1 trillion in the first quarter of 2026. He assessed that this figure does not necessarily reflect excessive fiscal pressure and is still within the safe range.
According to Law No. 17 of 2003, the state budget deficit is set at a maximum of 3 percent of Gross Domestic Product (GDP). The current deficit is around 0.93 percent of GDP.
“This means that fiscal space is still well-maintained and has not exceeded the specified threshold,” he concluded.
Meanwhile, the government continues to take various anticipatory measures to address potential future global risks, including maintaining food supplies and controlling prices, as well as strengthening productive sectors that can support economic growth.
This situation makes Indonesia relatively better prepared than many other countries still grappling with high inflation and fiscal pressures. With controlled inflation and a manageable deficit, the government has more flexibility in policymaking to respond to global dynamics.
