In the midst of global uncertainty, the government is optimistic that Indonesia's economy will remain resilient.

Coordinating Minister for the Economy Airlangga Hartarto (Photo: dok. Antara)

JAKARTA - President Prabowo Subianto held a Government Working Meeting with the Red and White Cabinet, Level I officials of ministries/institutions, and the CEOs of SOEs at the Presidential Palace in Jakarta.

This meeting is an event to evaluate performance and strengthen government consolidation in the face of global dynamics.

In general, Indonesia's economic conditions still show solid performance, compared to G20 member countries, Indonesia's economic growth in the fourth quarter of 2025 was 5.39 percent, ranking second, just below India which recorded growth of 7.40 percent.

Coordinating Minister for the Economy Airlangga Hartarto, said that domestic consumption remained strong and contributed around 54 percent to GDP.

"Our food security is also relatively strong, rice production in 2025 is 34.7 million tons, and Bulog stocks (as of April 8, 2026) are 4.6 million tons," he explained in his statement, quoted on Thursday, April 9.

Regarding the dynamics of global commodity prices due to the conflict in the Middle East, especially crude oil, Airlangga explained that there was a potential pause of about two weeks following the postponement of the attack by the United States, and this condition encouraged a decline in oil prices, where WTI was at the level of 96.7 US dollars per barrel and Brent at 95.23 US dollars per barrel.

In terms of fiscal performance, the state budget performance was also quite strong, supported by tax revenue until the end of the first quarter of 2026 which grew 14.3 percent or reached Rp462.7 trillion, and the Manufacturing PMI in March 2026 was at an expansionary level, namely 50.1.

The government continues to prepare various strategic policies to maintain the momentum of economic growth and stability, one of which is through the implementation of the B50 biodiesel program which is considered capable of strengthening the country's budget resilience.

"We have agreed that as of July 1, B50, which increases the budget resilience from savings of Rp48 trillion," he said.

In addition, the government is also committed to maintaining fiscal discipline, by maintaining the debt ratio in the range of 40 percent and the budget deficit at the level of 3 percent until the end of the year.

"The President committed that the debt ratio would be maintained at 40 percent, although the law provides for up to 60 percent. Likewise, the budget deficit is maintained at 3 percent and this will be maintained until the end of the year," said Airlangga.

Meanwhile, in the first quarter of 2026, the Indonesian economy also showed good resilience, reflected by the Consumer Confidence Index (IKK) at an optimistic level of 125.2 and foreign exchange reserves of US$ 151.9 billion or equivalent to six months of imports.

"Therefore, the government still sees economic growth in the first quarter is still good, still able to reach or greater than 5.5 percent," he said.

In terms of monetary policy, the government continues to coordinate with Bank Indonesia through the triple intervention policy in the spot and non-delivery forward markets to maintain the stability of the rupiah exchange rate, with the BI Rate remaining at 4.75 percent.

"The President also directed bilateral currency swaps to be continued with several countries. Now China, Japan, Australia, Singapore, Malaysia, South Korea, and in the future several countries also need to be encouraged," said Airlangga.

In the energy and transportation sector, the government implemented a policy of adjusting the price of avtur through a DTP VAT incentive of 11 percent for two months. This policy helped hold down the increase in domestic air ticket prices in the range of 9 percent-13 percent.

"For the impact on the cost of the hajj, as we know that the cost of the hajj has been reduced by Rp2 million, then the impact of the increase in avtur is absorbed by the Government, so there is no increase in the cost of the hajj. This is absorbed for about 220 thousand pilgrims, and the figure is a budget of Rp. 1.77 trillion charged to the State Budget. Thus, there is no impact on the pilgrims," he concluded.