Jakarta – The government has confirmed that Indonesia’s current economic condition remains stable and has strong foundations, deeming concerns about a repeat of the 1998 economic crisis unfounded. This optimism is based on various economic indicators demonstrating national resilience amidst global economic challenges.
The Head of the Indonesian Communications Agency (Bakom), Muhammad Qodari, said that Indonesia’s current economic conditions are very different compared to those before the 1998 crisis. According to him, various fundamental indicators show that the national economy is on a healthy track.
“Looking at various existing economic indicators, the current foundation of the national economy is very strong. This is what has kept Indonesia’s economic situation stable and operating at a very high level,” said Qodari.
He explained that Indonesia’s economic growth in the first quarter of 2026 reached 5.61 percent annually, while inflation remained at 3.08 percent and remained relatively manageable. Furthermore, the government debt-to-gross domestic product (GDP) ratio ranged from 40 to 41 percent, still well below the government’s maximum limit of 60 percent.
Qodari also assessed that the national banking sector is now much more resilient than during the 1998 crisis, supported by strong capital adequacy levels. He believes the existence of the Deposit Insurance Corporation (LPS) has helped strengthen public confidence in the financial system.
“The most fundamental difference compared to 1998 is that we now have the Deposit Insurance Corporation. This institution provides a sense of security and increases public trust in the banking system,” he said.
In response to global economic dynamics, the government is also providing a soybean subsidy of IDR 2,000 per kilogram to tofu and tempeh producers to reduce the impact of rising global soybean prices.
“Every problem felt by the public is immediately received by President Prabowo Subianto’s aides and immediately reported to the President so that it can be followed up quickly,” said Qodari.
Meanwhile, Finance Minister Purbaya Yudhi Sadewa is optimistic that Indonesia’s economic growth in 2026 could approach 6 percent if global geopolitical conditions improve. He believes stable global oil prices will provide the government with the opportunity to redirect energy subsidy funds to productive sectors.
“I hope the global economy improves and world oil prices stabilize. This way, the budget previously allocated for energy subsidies can be used for other, more productive sectors, thereby accelerating economic growth,” Purbaya said.
He emphasized that all government economic policies will be directed at strengthening the foundations of the national economy while supporting the economic growth target of 8 percent by 2029.