Indonesia's economy remains resilient amid global risks: govt

Jakarta (ANTARA) - Indonesia's economic fundamentals remain resilient despite global uncertainty, supported by solid macroeconomic indicators and continued structural reforms, an official said.

"Indonesia's macroeconomic indicators continue to show strong performance. We can address many challenges because our national economic fundamentals remain strong," Coordinating Ministry for Economic Affairs Secretary Susiwijono Moegiarso said in a statement on Monday.

He said Indonesia's economy grew 5.61 percent in the first quarter of 2026, while May inflation stood at 3.08 percent, remaining within the government's target range. The consumer confidence index also remained at an optimistic level.

Susiwijono added that the manufacturing Purchasing Managers' Index (PMI) returned to expansion territory at 50, while foreign exchange reserves reached US$144.9 billion, equivalent to 5.6 months of imports. Investment realization in the first quarter also nearly reached Rp500 trillion (around US$28 billion).

To sustain economic growth, the government will continue advancing strategic priorities, including improving the investment climate through deregulation, debottlenecking investment barriers, and streamlining business licensing.

It will also strengthen priority sectors, develop the digital economy, promote downstream industries, enhance food and energy security, and improve human resource quality.

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Susiwijono said the completion of trade agreements, including the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) and the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA), will expand Indonesia's access to strategic export markets and strengthen the competitiveness of domestic products.

He also highlighted the government's policy on natural resource export proceeds (DHE SDA), which requires export earnings from the mining, plantation, forestry, and fisheries sectors to be retained in Indonesia's financial system.

According to him, the policy aims to strengthen domestic foreign exchange liquidity, maintain exchange rate stability, bolster foreign exchange reserves, and support national development financing.

He stressed that the DHE SDA policy represents a strengthening of an existing policy rather than a new measure.

"Our economic fundamentals are actually very strong. If there are concerns about investor confidence, we need to explain the actual situation and build optimism about Indonesia's economic future," Susiwijono said.

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Translator: Bayu Saputra, Nabil Ihsan

Editor: Anton Santoso

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