Airlangga optimistic of economic rebound in second half of 2026

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto expressed optimism that Indonesia’s economy will regain momentum and strengthen in the second half of 2026.

"We will see, approaching the third and fourth quarters, the economy will pick up again," Minister Airlangga stated at his office here on Friday.

The minister's reassurance comes in response to recent public concerns over a dip in the Consumer Confidence Index (CCI) and a continued contraction in the country's manufacturing Purchasing Managers' Index (PMI) over the past few months.

According to data released by Bank Indonesia (BI), the CCI slipped to 117.8 in June 2026, down from 120.9 recorded in May 2026.

Despite the drop, Airlangga maintained that domestic consumer confidence remains well within a secure and optimistic threshold.

“The CCI is still well above the 100-threshold, meaning it is safe," Airlangga explained.

"We just passed the Eid al-Fitr period. Eid does not happen every quarter, and it is completely normal for consumption indicators to experience a slight post-holiday correction,” he added.

In contrast to the steady consumer index, Indonesia's Manufacturing PMI recorded a contractionary reading of 46.9 in June 2026. A PMI score below the 50-point threshold indicates a contraction in the manufacturing sector.

Sought separately for comment, Institute for Development of Economics and Finance (Indef) economist Didik J. Rachbini evaluated that the drop in Manufacturing PMI to 46.9 should be utilized as momentum to accelerate national industrial transformation.

Rachbini, who also serves as Rector of Paramadina University, emphasized that a prolonged PMI contraction indicates deep-seated structural challenges within the industrial sector that require immediate and consistent policy interventions.

"This PMI figure indicates that our industrial sector has been ailing for a long time and is now in the red zone with an index level below 50," Rachbini pointed out.

He concluded that revitalizing the industrial sector remains paramount, as sustainable national economic growth heavily relies on strong manufacturing performance, high-quality productive investments and robust job creation.

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Translator: Bayu Saputra, Yashinta Difa

Editor: Primayanti

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