By: Bagus Adiyatma)
The Indonesian government has affirmed that escalating global political tensions have not undermined national economic stability. Amid global pressures marked by geopolitical conflicts and financial market volatility, the government ensures that the domestic economy remains on a strong and controlled trajectory. Strategic measures continue to be prepared as part of an adaptive response to rapidly evolving global dynamics.
This commitment is reflected in solid policy coordination among ministries and swift responses to presidential directives aimed at maintaining national economic resilience. The government views economic stability not merely as maintaining growth figures, but also as ensuring sustainability and resilience in the face of complex external pressures.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that the government is moving quickly to ensure that the national economy remains stable. He noted that Indonesia’s economic fundamentals are currently robust, supported by sound fiscal stability and secure energy availability. In his view, these conditions demonstrate Indonesia’s ability to maintain resilience amid uncertain global pressures.
Furthermore, Airlangga sees the challenging global situation not as an obstacle, but as an opportunity to accelerate economic transformation. The government is leveraging this momentum to promote a shift toward more modern and efficient systems. This approach is considered crucial for Indonesia not only to endure but also to enhance its competitiveness in a changing global landscape.
Similar optimism was expressed by Finance Minister Purbaya Yudhi Sadewa, who confirmed that the country’s fiscal condition remains healthy. He stressed that budget management is conducted carefully and prudently, enabling the country to withstand potential global economic shocks. Available fiscal space is deemed sufficient to act as a buffer against external pressures.
Purbaya explained that, through the end of the year, the state budget remains under control, with the deficit maintained within established limits. The government has also prepared various scenarios to ensure fiscal stability is preserved. With such careful planning, the public is encouraged not to worry about the country’s financial condition.
Efforts to maintain economic stability are further strengthened through disciplined macroeconomic management. Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, stated that the government continues to monitor global developments while ensuring domestic conditions remain strong. He reaffirmed that Indonesia’s economic fundamentals remain resilient and capable of withstanding external pressures.
National economic performance has shown positive results. Economic growth in 2025 reached 5.11 percent year-on-year, a relatively high figure compared to many other countries. Meanwhile, inflation has remained under control within the targeted range, reflecting the effectiveness of government price stabilization policies.
On the domestic demand side, household consumption continues to be the main driver of economic growth. Various fiscal stimuli and social assistance programs implemented by the government have proven effective in maintaining purchasing power. This condition has made a significant contribution to sustaining growth momentum amid global pressures.
The real sector has also demonstrated strong resilience, particularly in manufacturing. Manufacturing activity remains in an expansion phase, with index achievements indicating growth over the past two years. This reflects that the industrial sector continues to operate and support the national economy despite external challenges.
Fiscal resilience is further reinforced by the solid performance of the State Budget (APBN). As of February 2026, tax revenues have recorded significant growth. Tax reforms and digitalization through the Coretax system have become key factors in strengthening the country’s revenue base while improving taxpayer compliance.
In addition, national economic resilience is supported by strengthened food and energy sectors. Indonesia has achieved self-sufficiency in several key commodities and recorded a surplus in energy production through its biodiesel program. These conditions provide a strong buffer against global volatility, particularly related to rising energy prices and supply disruptions.
The government also continues to push for economic transformation as a long-term strategy. Industrial downstreaming, investment strengthening, and accelerated digitalization are key priorities in creating new sources of growth. The development of electric vehicles and renewable energy is also an important part of building a sustainable economy.
Amid global uncertainty, the government has adopted a measured and cautious approach in responding to developments. Policies are designed not only to maintain short-term stability but also to strengthen the economic foundation for the long term. This reflects a strategic, rather than reactive, approach in facing global challenges.
Looking ahead, the government remains optimistic that Indonesia’s economy can grow by around 5.4 percent in 2026. This optimism is based on maintained stability and ongoing structural reforms. With a combination of adaptive policies and strong economic fundamentals, Indonesia is expected to sustain positive growth.
Global geopolitical tensions indeed present significant challenges. However, with solid policy coordination, disciplined fiscal management, and strengthened domestic sectors, Indonesia is able to maintain its economic stability. The government ensures that every policy remains oriented toward protecting public interests and sustaining national economic growth.
*) Economic Policy Analyst
