Easing global tensions lift sentiment toward Indonesia: Kadin

Jakarta (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) said easing global geopolitical tensions have also been accompanied by positive sentiment toward Indonesia.

Kadin Chairperson Anindya Bakrie said businesses faced various challenges throughout the second quarter of 2026, ranging from geopolitical uncertainty to pressure on the rupiah exchange rate, as well as weakened public purchasing power and rising energy costs.

According to Kadin's statement received here on Friday, Indonesia is currently entering a phase of economic transformation from a natural resource-based economy to one driven by human resources.

"Indonesia is transforming from a natural resource-based economy into a human resource-based one. Every transition comes with challenges, so we must prepare by improving the quality of our human resources," Bakrie said.

Bakrie said global investors are no longer focused solely on Indonesia's economic potential but are now paying closer attention to the country's ability to implement its policies.

He emphasized that Indonesia's economic fundamentals remain strong despite global challenges. He expressed optimism that the country's economy would continue to grow at around 5 percent in 2026.

"Inflation also remains under control, and Indonesia's debt-to-GDP ratio is among the best in the G20," he said.

On the other hand, he said businesses need to adapt to the new global economic order, or the "new equilibrium." He stressed that the situation should be approached realistically while maintaining optimism.

"This is the new equilibrium. Of course, we want the rupiah to strengthen and interest rates to decline, but we also have to look at the situation as it is with a clear head. Usually, after one to three years, when confidence returns, the situation will reverse," he explained.

Therefore, he urged businesses to continue improving efficiency, accelerate technology adoption, preserve jobs, and expand export markets by taking advantage of various international trade agreements.

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Translator: Ahmad, Kenzu

Editor: Azis Kurmala

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