Economic Fundamentals Are Getting Stronger, “Dark Indonesia” Provocation Is Just an Illusion
By: Laras Mulyani)*
The dark narrative about Indonesia’s economic condition, which is said to be on the verge of crisis, has re-emerged in the public space. Unfortunately, this narrative is far from reality. Objective facts show that the national economy is in a stable and prospective position. All provocative efforts that try to frame Indonesia as a country in decline are merely illusions that are not in line with the clear economic indicators. The government has succeeded in maintaining growth momentum, controlling inflation, and strengthening national resilience amidst global pressure.
One of the main indicators that proves the strength of the national economy is the position of foreign exchange reserves. Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that Indonesia’s foreign exchange reserves reached more than USD 156 billion. This figure is enough to finance seven months of imports and pay all short-term foreign debts. In addition, the government’s policy of requiring storage of foreign exchange from exports domestically has proven effective in strengthening the rupiah exchange rate and supporting monetary stability.
Furthermore, Airlangga emphasized that the recent rupiah fluctuations are still within reasonable limits as part of the dynamics of the global market. The government and Bank Indonesia have also responded appropriately with measured interventions, so that the fluctuations do not have a systemic impact. Amid external pressures such as high global interest rates and geopolitical turmoil, Indonesia has been able to maintain exchange rate stability and maintain the trust of international market players.
The “dark Indonesia” narrative clearly has no empirical basis. Such provocation is not only misleading, but also dangerous for social stability and public psychology. Airlangga reminded that the public should not be influenced by opinions that are not based on data. The government has a strong commitment to maintaining national economic stability, and all major indicators prove that the policy direction so far has been correct.
Inflation stability is another achievement that deserves appreciation. During early 2024 until the 2025 Eid holiday, inflation remained within the target range, even recording deflation. Bank Permata economist, Josua Pardede, stated that this achievement proves the effectiveness of fiscal and monetary policies taken by the government as well as strong synergy with monetary authorities. This also refutes the narrative that people’s purchasing power is weakening, because domestic consumption remains the main driver of growth.
In the financial sector, Indonesia’s economic foundation is increasingly solid. The non-performing loan (NPL) ratio remains low, at 2.08%. According to Josua, this shows that the national banking sector is in a very healthy condition. There are no signs of a liquidity crisis or systemic disruption that could lead to economic instability. On the contrary, banking performance continues to grow with expansive and healthy credit distribution.
The resilience of the national economy is also reflected in the decline in the ratio of foreign debt to gross domestic product (GDP). This shows the government’s ability to manage financing carefully and sustainably. Josua emphasized that with a debt structure dominated by long-term and low interest rates, Indonesia is on a safe and controlled fiscal path.
It is important to understand that pessimistic narratives are often raised by irresponsible parties, often with political goals or certain interests. However, the public is increasingly smart in sorting information. Objective facts and data transparency from the government are the main bulwarks against disinformation and agitation.
Indonesia’s economic strength is also reflected in the continued increase in investment flows, both from within and outside the country. Structural reforms carried out in the form of industrial downstreaming, digitalization, and infrastructure development have succeeded in increasing national competitiveness. International investor confidence in Indonesia continues to grow, as seen from the stable debt rating in the investment grade category by global rating agencies.
This condition proves that the government is not only able to maintain stability, but also continues to carry out sustainable economic transformation. The development of green energy-based industrial areas, support for MSMEs, and increasing connectivity between regions are the backbone of inclusive long-term growth. All of this emphasizes that Indonesia is moving forward, not towards darkness.
Therefore, the narrative of “dark Indonesia” should be removed from the public space. Not only because it is baseless, but because it is contrary to the actual reality. Indonesia is currently an example of a developing country that has succeeded in maintaining stability amidst tough global challenges. When the world was hit by uncertainty, Indonesia was able to stand tall with a solid economic footing.
These facts should be a matter of reflection together. Instead of spreading provocation, it is time for all elements of society to support the government’s hard work in maintaining stability and encouraging economic growth. Indonesia is not in the dark. Indonesia is bright and moving forward towards a more prosperous and competitive future.
)* The author is a practitioner of political economy
