Indonesia remains safe haven for investment amid turmoil: Airlangga

Jakarta (ANTARA) - Indonesia remains an attractive destination for foreign investment despite escalating geopolitical conflicts and market turmoil, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

While international friction has forced global investors to become deeply cautious, Hartarto noted on Wednesday that the Indo-Pacific—and Southeast Asia in particular—continues to stand out as a stable, profitable anchor for foreign direct investment.

"Peace always has a positive impact on the global outlook and the global economy," Airlangga said in his statement.

"Secondly, it will also improve the supply chain. These two things have a significant impact on the Indonesian economy," he added.

Airlangga pointed to Southeast Asia's resilient fundamentals as a primary engine for investor confidence.

Economic growth across the ASEAN has consistently held above four percent, fortified by strong regional trade frameworks with economic powerhouses including China, Japan, South Korea, Australia, and New Zealand.

This regional stability is manifesting directly in Indonesia's infrastructure. The country’s Special Economic Zones (SEZs) are reporting high occupancy rates as global manufacturers look to relocate facilities amid a broader global supply chain realignment.

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To maintain the country's economic appeal, Airlangga emphasized that the government is continuously strengthening coordination between fiscal and monetary policies to guard domestic stability and defend the rupiah exchange rate.

He added that recent policy steps, taken by Bank Indonesia to keep rupiah instruments attractive, are expected to reduce capital outflow pressures and support the steady influx of high-quality investments.

"The cooperation between the fiscal and monetary sectors has been very good. We meet regularly to monitor third-party funds in banks, credit distribution, and market liquidity, which is crucial," Airlangga explained.

Beyond internal stabilization, Jakarta is actively expanding international market access, notably through Indonesia's ongoing accession process to the Organization for Economic Co-operation and Development (OECD).

Full OECD membership is expected to systematically upgrade the quality of national regulations, strengthen global investor trust, and unlock seamless access to an economic market valued at approximately US$64 trillion.

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Translator: Bayu Saputra, Yashinta Difa

Editor: Rahmad Nasution

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