JAKARTA - The government continues to strengthen national economic policies to ensure stability and encourage improvements in the quality of economic growth amid global uncertainty.
Various external challenges, such as the fragmentation of international trade and the slowdown in the world economy, require policies that are responsive, consistent, and have a medium- and long-term perspective so that the growth rate of the national economy remains sustainable.
Coordinating Minister for the Economy Airlangga Hartarto said that despite the increasing global pressure due to economic slowdown and geopolitical tensions, the Indonesian economy still showed strong resilience with a relatively low risk of recession.
"I think in the midst of global uncertainty stemming from economic slowdown and increased geopolitical tensions, Indonesia's economy remains resilient with a relatively low recession risk rate, based on Bloomberg, compared to the US, China, and Japan," he said in a statement, Thursday, January 15.
Airlangga explained that for the past seven years, Indonesia's economic growth has consistently been in the range of 5 percent, reflecting an accumulation of growth of around 35 percent and macroeconomic stability has also been maintained, reflected by the December 2025 inflation which is at the level of 2.92 percent.
He added that the performance of the financial market showed positive developments, marked by the stock index which continued to record a record, the stability of the rupiah exchange rate, and the real sector activity which remained expansive, this was seen from the manufacturing PMI which was at the level of 51.2 and the increase in the consumer confidence index to 123.5.
Meanwhile, from the external side, Indonesia's position remains strong with a trade balance surplus and foreign exchange reserves of US$156.1 billion.
Airlangga added that in terms of financing and investment, bank credit growth was maintained at around 8 percent, while foreign direct investment (FDI) continued to increase.
According to him, this condition reflects the high global confidence in the stability of the national economy and Indonesia's long-term growth prospects.
Airlangga also emphasized that the state budget would continue to play a role as a credible fiscal policy instrument and be managed carefully where the 2025 state budget deficit is maintained below 3 percent with a controlled debt ratio.
"The government has also prepared an economic stimulus package throughout 2025 with a total value of Rp. 110.7 trillion to maintain people's purchasing power and support national economic growth," he explained.
He said that by 2026, the government targets economic growth of around 5.4 percent which is driven by the strengthening of the real sector, the implementation of economic policy packages, and the implementation of eight national priority programs.
Airlangga emphasized that the focus was directed at strengthening food and energy security, as well as empowering MSMEs which are expected to be able to create millions of new jobs every year.
In addition, Airlangga said that the state budget was also focused on human resource development through the education sector, social protection, and improving the skills of the workforce.
He added that with various programs to increase productivity, including an internship program for new graduates, labor training, and facilitation of labor placement abroad in strategic sectors.
According to him, as digital transformation accelerates, Indonesia also encourages the strengthening of digital economy in the region through the ASEAN Digital Economy Framework Agreement initiative.
"The government is expanding the QRIS digital payment system regionally and internationally as part of efforts to strengthen financial inclusion and people's digital literacy," he explained.
On the other hand, Airlangga said, efforts to improve the investment climate continue through the simplification of regulations and acceleration of the implementation of national strategic programs.
According to him, labor-intensive sectors such as textiles, electronics, and export-oriented manufacturing are the main concerns to maintain competitiveness and protect millions of workers in the midst of global trade dynamics.
In addition, Airlangga invited business actors and stakeholders to remain optimistic about Indonesia's economic prospects.
With solid economic fundamentals, prudent fiscal policies, and a sustainable structural reform agenda, Indonesia is believed to be able to maintain stability while strengthening economic growth in the future.
"So, facing the upcoming period, I think we have to be optimistic, there will be a lot of good news. And I am sure, global trends, including the IMF, are also optimistic about the Indonesian economy," he concluded.
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