JAKARTA — The Indonesian economy is showing stable conditions with various indicators reflecting positive growth.
Finance Minister Sri Mulyani Indrawati emphasized that the national economy remains strong, supported by a number of key indicators such as the Purchasing Managers’ Index (PMI) which is at an expansionary level and a trade balance surplus that continues to be maintained.
“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, Friday (21/3).
Data shows that Indonesia’s manufacturing PMI as of February this year reached 53.6, up 1.7 points compared to the previous month.
A PMI above 50 indicates manufacturing sector expansion, with February’s reading the highest in 11 months.
Coordinating Minister for Economic Affairs Airlangga Hartarto also highlighted the fluctuation of the Rupiah exchange rate which remains supported by strong economic fundamentals.
Export growth, foreign exchange reserves, and the trade balance that continues to show a positive trend are the main factors maintaining economic stability in the medium to long term.
The government also implemented new regulations regarding Export Proceeds (DHE) to increase state revenue.
“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,” said Airlangga.
With this policy, Indonesia’s economic stability is believed to be increasingly solid and capable of facing global challenges.
Meanwhile, Head of the Macroprudential Policy Department of Bank Indonesia (BI) Solikin M. Juhtegaro emphasized that the current economic conditions are much better compared to the 1998 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, Jakarta, Wednesday (26/3).
Solikin added that the Indonesian economy remains on a positive growth path.
“Our economy grew by 5.02% throughout 2024, and inflation was also maintained at 1.57% year on year,” he said.
Compared to other countries such as Vietnam and India which are experiencing high inflation, Indonesia still has a controlled foreign debt level at 30% of Gross Domestic Product (GDP), much lower than Malaysia which reached 69%.
With these various positive indicators, the Indonesian economy remains in good condition and continues to show resilience amidst global dynamics.
The government and Bank Indonesia are committed to maintaining stability and implementing policies that encourage sustainable growth. (*)
