Despite Global Pressures, Indonesia's Economic Fundamentals Remain Steady

TheIndonesia.co - Indonesia’s economic fundamentals remain solid despite global headwinds, with stable growth, controlled inflation and a sustained trade surplus, Deputy Finance Minister Suahasil Nazara said on Wednesday, April 8, 2026.

In a statement from Jakarta, Nazara said the economy continues to expand at around 5 percent, while inflation remains near the government’s target range and external balances stay strong.

Annual inflation stood at 3.48 percent year-on-year in March 2026, while the trade balance posted a US$1.27 billion surplus in February, marking 70 consecutive months of surplus.

“We have recorded a trade surplus for 70 straight months, or more than five years, while foreign exchange reserves remain adequate and the manufacturing sector continues to expand,” he said, as quoted by Antara.

Nazara said the government is pursuing a consistent and targeted development strategy to navigate global uncertainty and avoid the middle-income trap.

The strategy is built on five key priorities, starting with improving labor productivity through investments in human capital, including education, healthcare and social protection.

The second focuses on infrastructure development to widen access to basic services and strengthen food and energy security.

Third, the government is pushing institutional reforms to build an effective and credible bureaucracy capable of producing impactful regulations.

The fourth priority is strengthening macroeconomic policy to ensure it remains adaptive and responsive to global developments.

The fifth centers on maintaining political and security stability, which Nazara described as a prerequisite for sustained economic progress.

He said these pillars are designed to reinforce resilience and support long-term growth amid external pressures.

The government also aims to sustain investor confidence by maintaining prudent fiscal and monetary management.

Nazara stressed that credibility is critical to implementing these policies effectively.

“This is a vital asset and essential for all institutions managing fiscal, monetary and investment policies,” he said.