Jakarta – Indonesia’s economic fundamentals remain robust amid ongoing global challenges. Various economic indicators reflect a stable and resilient national economy, demonstrating Indonesia’s capacity to navigate current economic dynamics. However, the public is urged to remain cautious of narratives attempting to shape negative perceptions about the economy that do not align with actual conditions on the ground.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that Indonesia’s economic fundamentals remain solid despite the fluctuating rupiah exchange rate. According to Airlangga, strong fundamentals are reflected in the country’s substantial foreign exchange reserves, a healthy trade balance, and the current policy requiring all export proceeds (DHE) to be retained domestically.
“The rupiah, as usual, fluctuates, but fundamentally, we remain strong. We are also looking at the medium- and long-term outlook,” said Airlangga.
The Minister added that the government has implemented a policy ensuring that export earnings are held within the country.
“We are already implementing the policy on export proceeds, so we are not cornered moving forward. This will also strengthen the rupiah’s position,” he continued.
Additionally, the resilience of Indonesia’s banking and financial sectors further confirms the country’s strong economic fundamentals. The banking sector continues to enjoy ample liquidity, with capital adequacy ratios remaining at safe levels, and credit flows actively supporting the real sector. These factors indicate that Indonesia’s financial system is robust and capable of withstanding external pressures.
Solikin M. Juhro, Assistant Governor and Head of the Macroprudential Policy Department at Bank Indonesia, reaffirmed that Indonesia’s economic fundamentals are in good shape and far from the conditions experienced during the 1998 financial crisis.
“This is evident from macroeconomic indicators, such as a GDP growth rate of 5.02% in 2024, inflation at 1.57%, a current account deficit of only 0.32%, and a banking capital adequacy ratio (CAR) of 27.76%,” stated Solikin.
The sustainability of Indonesia’s economic growth heavily relies on collaboration between the government, the private sector, and the public. With full support from all stakeholders, Indonesia holds great potential to continue advancing and establishing itself as a major economic power on the global stage.