JAKARTA - Minister of Finance Purbaya Yudhi Sadewa, emphasized that the foundation of the Indonesian economy is currently in a strong condition.
He added that this stability was supported by healthy and careful fiscal management, with the budget deficit consistently maintained below the 3 percent limit as stipulated in the law.
In a public lecture held at Nankai University, Tianjin, China, Purbaya expressed his hope that the academic forum could strengthen the exchange of ideas and strengthen the friendship between Indonesia and China.
The event was attended by Nankai University President Chen Yulu, Executive Vice President Chen Jun, Vice President Sheng Bin, Professor Xingmin Li, and hundreds of students.
"It is a great honor for me to be at Nankai University. Today, I am happy to share Indonesia's perspective on economic policy, fiscal management, and sustainable national development. I hope that this dialogue will strengthen academic exchanges, deepen mutual understanding, and further strengthen friendship between Indonesia and China," he said in an official statement, quoted Sunday, June 21.
According to him, in the midst of a global condition that is beginning to improve, marked by a decrease in market volatility and an increase in investor positive sentiment, Indonesia's economy has shown a prominent performance.
In the first quarter of 2026, Indonesia's economy grew by 5.61 percent year-on-year, surpassing the average growth of G20 and ASEAN countries.
This performance is supported by the inflation rate which remains under control, namely until May 2026, inflation was recorded at 3.08 percent.
The combination of strong economic growth and maintained price stability further increases market confidence in the credibility of Indonesia's macroeconomic policies.
"Indonesia continues to stand out with a GDP growth of 5.61 percent yoy in the first quarter of 2026, outperforming many G20 and ASEAN economies. At the same time, we maintain price stability with May 2026 inflation of 3.08 percent. This development proves that Indonesia enters this period with strong growth, controlled inflation, and credible policy resilience," he said.
Furthermore, he also assessed that Indonesia has a fairly strong position in facing potential global energy disruptions.
Based on energy resilience analysis, Indonesia is in the low risk category with good buffering capacity, namely Indonesia's energy resilience score reaches 77 percent, slightly above China which is at the level of 76 percent and only a small gap from South Africa with 79 percent.
This resilience is strengthened by a disciplined fiscal policy, namely the budget deficit which is kept below 3 percent, which provides room for the state budget to act as a shock absorber instrument when external pressures occur, without disrupting the stability of the national economy.
Furthermore, he explained that various economic indicators show increasingly strong and inclusive economic activity, which is seen from the Manufacturing PMI which is at an expansionary level of 50.0, economic liquidity growth (M0) of 14.8 percent on an annual basis, and an increase in bank credit of 11.5 percent.
Externally, Indonesia recorded a trade balance surplus for 72 consecutive months and foreign exchange reserves reached US$144.9 billion or equivalent to 5.6 months of imports and government external debt payments, so this condition also strengthens the resilience of the national economy.
Solid economic growth also has a direct impact on people's welfare, where during the period, about 1.9 million new jobs were created, so that the open unemployment rate fell to 4.68 percent in 2026.
On the other hand, the poverty rate continues to decline from 8.57 percent in September 2024 to 8.25 percent in September 2025 thanks to the effectiveness of social protection programs.
In the implementation phase of development, the government is currently implementing eight clusters of national priority programs that are focused on generating tangible benefits for the community.
"These priorities include the foundations of national resilience: food sovereignty, energy and water independence, education, health, and infrastructure, housing, and disaster resilience," he explained.
The government also continues to encourage structural transformation through downstream processing and industrialization, strengthening the people's economy and village development, and accelerating poverty eradication through social assistance programs and the creation of integrated employment.
All these efforts are supported by strengthening the defense and security sector, law enforcement, good governance, digitization, and economic diplomacy. Thus, national development is not only focused on economic growth, but also on the equitable distribution of welfare, resilience, and sustainability.
"This proves that Indonesia's economic growth is not only resilient at the macro level, but also visibly transformed into the availability of employment, a reduction in poverty rates, and the welfare of a wider and more equitable society," he said.
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