JAKARTA – Indonesia’s economic indicators show conditions that remain solid, therefore, the public need not worry about baseless issues of economic weakness.
Indonesia’s Purchasing Managers’ Index (PMI) and trade balance are on a positive trend, the data dispels the notion that the national economy is weakening.
Finance Minister Sri Mulyani Indrawati emphasized that Indonesia’s economic and fiscal conditions are in good condition.
According to him, a number of key indicators reflect strong economic resilience.
“Indonesia is good, we will convey the indicators later. Our PMI is good, our trade balance is good. So we can convey it later,” said Sri Mulyani at the State Palace Complex.
Indonesia’s manufacturing PMI as of February 2024 was recorded at 53.6, an increase of 1.7 points compared to the previous month.
A reading above 50 indicates expansion, and is the highest reading in the last 11 months.
The ongoing trade balance surplus is also a strengthening factor for the national economy.
Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted the Rupiah exchange rate which has fluctuated, but remains supported by solid economic fundamentals.
Export growth, foreign exchange reserves, and the Export Proceeds (DHE) policy also support the stability of the Rupiah.
“Yes, of course exports must continue, then deregulation by the President so that licensing and others are made easier, so that imports and exports are smoother,” explained Airlangga.
Head of the Macroprudential Policy Department of Bank Indonesia, Solikin M. Juhtegaro, also emphasized that the current situation is different from the 1998 monetary crisis.
“In short, if we conclude, this is still far. I dare to affirm that this is still far,” he said in a press conference at the BI Head Office, Wednesday (26/3).
The Indonesian economy grew by 5.02% throughout 2024 with inflation maintained at 1.57% year on year.
Solikin also compared Indonesia’s economic conditions with other countries, such as Vietnam and India, which experienced higher inflation despite high economic growth.
Indonesia also has a more controlled portion of foreign debt, only around 30% of GDP, much lower than Malaysia which reached 69%.
Although the Rupiah exchange rate has weakened due to external factors such as global geopolitical tensions and US tariff policies, Bank Indonesia ensures that Indonesia’s economic fundamentals remain strong.
With a variety of positive indicators, concerns about economic slowdown are unfounded, and the Indonesian economy remains on a stable growth path. (*)
