Jakarta — The government has emphasized that Indonesia’s economic fundamentals remain strong amidst the dynamics of global uncertainty, thus deeming public concerns about a repeat of the 1998 economic crisis unfounded.
The Head of the Indonesian Government Communications Agency (Bakom), Muhammad Qodari, said that various national macroeconomic indicators show very different conditions compared to the situation leading up to the 1998 crisis.
“So, actually, our fundamental indicators are very strong, and that’s what makes today’s situation and conditions very, very stable,” Qodari said.
He explained that national economic growth in the first quarter of 2026 was recorded at 5.61 percent annually, making Indonesia one of the countries with the highest growth in the world.
Annual inflation remained stable at 3.08 percent, a figure he said reflected price stability despite increasing global economic pressures.
From a fiscal perspective, the government debt-to-GDP ratio is in the range of 40–41 percent, well below the statutory maximum limit of 60 percent.
The national banking sector is also considered much stronger than in 1998, supported by a maintained capital adequacy ratio (CAR) and the existence of the Deposit Insurance Corporation (LPS) which provides a sense of security for the public.
The government, Qodari continued, continues to be responsive to the impact of the global economy on society, one of which is through a soybean subsidy of IDR 2,000 per kilogram for tofu and tempeh producers to reduce the impact of rising global soybean prices due to the weakening rupiah.
Echoing this sentiment, Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, added that several other indicators also bolster the picture of national economic stability. The consumer confidence index remains in the optimistic zone, while the manufacturing Purchasing Managers’ Index (PMI) has returned to expansion at 50.
Foreign exchange reserves were recorded at USD 144.9 billion, equivalent to 5.6 months of imports, and investment realization in the first quarter of 2026 reached nearly IDR 500 trillion.
The government also continues to expand export market access through trade agreements such as the IEU-CEPA and I-EAEU FTA, as well as strengthening the Foreign Exchange Proceeds from Natural Resource Exports (DHE SDA) policy to maintain foreign exchange liquidity and exchange rate stability.
“Our economic fundamentals are actually very strong. If there are currently issues related to investor trust, we need to work together to explain the true situation and build optimism for the future of the Indonesian economy,” said Susiwijono.
With solid growth, controlled inflation, a safe debt ratio, and a resilient financial sector, the government is optimistic that the Indonesian economy will be able to overcome global challenges without plunging into crisis.