Indonesia calls stronger governance as risks become normal

Jakarta (ANTARA) - The Indonesian government said global uncertainty has become the "new normal" and pledged to strengthen governance, financial reforms and international cooperation to safeguard economic resilience amid rising geopolitical and market risks.

"We live amid uncertainties that are no longer temporary but have become the new normal," Ferry Irawan, deputy for state-owned enterprises at the Coordinating Ministry for Economic Affairs, said at the 2026 Risk and Governance Summit in Jakarta on Tuesday.

He said geopolitical tensions, financial market volatility and supply chain disruptions have created increasingly complex and interconnected risks.

Irawan cited tensions involving the United States and Iran, saying they could raise global commodity prices, reshape interest rate expectations and affect open economies such as Indonesia.

Despite those challenges, he said Indonesia's economic fundamentals remain resilient.

He pointed to forecasts by the International Monetary Fund and the Asian Development Bank, which project Indonesia's economy to grow by 5 percent and 5.2 percent, respectively, in 2026.

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"These projections reflect the resilience of Indonesia's economic fundamentals despite an increasingly dynamic global environment," Irawan said.

He said the government is strengthening governance, deepening financial markets and advancing financial sector reforms to reinforce market integrity and investor confidence.

Key reforms include expanding local currency transactions, developing a national bullion ecosystem, improving financial literacy and inclusion, and increasing financing for productive sectors.

The government is also strengthening natural resource management through export proceeds policies while promoting digital transformation, the green economy and artificial intelligence as future growth drivers.

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At the international level, Indonesia continues to expand economic cooperation through forums including the OECD, BRICS, ASEAN and the Indo-Pacific Economic Framework to bolster resilience against global uncertainty.

Translator: Shofi Ayudiana, Resinta Sulistiyandari

Editor: Rahmad Nasution

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