In the midst of global turmoil, Airlangga is the Indonesian economic head in the first quarter of 2026 growing above 5 percent.

JAKARTA - The ongoing tension in the Strait of Hormuz has also triggered instability in world oil prices and has the potential to put pressure on the economy, including Indonesia.

Coordinating Minister for the Economy Airlangga Hartarto, emphasized that even though the global conditions were turbulent, the foundation of the national economy was still considered quite solid, although international developments still had to be monitored carefully.

"We know that the war in the Strait of Hormuz is not over, it is still in a situation that needs to be monitored on a micro level. Because the fluctuation of oil prices also goes up and down weekly," he said in a press conference, Thursday, April 23.

He added that amid global uncertainty, domestic economic activity was said to remain stable.

According to him, economic growth in the first quarter of 2026 was supported by household consumption, the distribution of holiday allowances (THR), and the acceleration of government spending.

"Indonesia itself has a fairly good growth in the first quarter. Supported by household consumption, the distribution of THR, as well as the acceleration of spending and stimulus reaching Rp809 trillion," he said.

He added that the government also estimates that economic growth in the first quarter of 2026 will be above 5 percent, even potentially reaching around 5.5 percent.

"Several times we predict that growth in the first quarter is fundamentally relatively good, and the figure if there is no protest is greater than 5.5 percent," he said.

However, Airlangga said that pressure from global factors is expected to not subside in the near future.

According to him, geopolitical uncertainty and unstable energy price movements are still challenges that must be watched.

He said that to maintain the sustainability of growth, the government had prepared a number of follow-up steps in the second quarter, including the disbursement of the 13th salary and the continuation of social protection programs to maintain people's purchasing power.

In addition, the investment sector continues to be encouraged as the main engine of economic growth, and the target for investment realization this year is pegged at Rp. 2,004 trillion, as part of efforts to achieve economic growth of at least 5.4 percent in the midst of uncertain global conditions.

"This is a step that needs to be maintained together, because this is a lever for our economy, because we want to achieve the target for growth this year of at least 5.4 percent, even in a global situation full of uncertainty," he said.

On the other hand, Airlangga said that Indonesia's macroeconomic conditions are still relatively stable, reflected by a sustained trade balance surplus, controlled inflation, and adequate foreign exchange reserves as the main supporting factors.

The government also assesses that national energy resilience is quite well maintained, considering that Indonesia is not entirely dependent on crude oil imports, and diversifying energy sources is one of the important strategies to reduce the impact of global turmoil.