Airlangga: Three Macroeconomic Indicators Show Indonesia's Economic Strengthening

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto said that the three newly released macroeconomic indicators showed strengthening Indonesia's economic performance.

He explained that inflation in November 2025 remained under control, Manufacturing PMI again recorded expansion, and the October 2025 trade balance continued the surplus trend for 66 consecutive months.

National inflation is also still in the target range of 2.5 percent plus minus 1 percent, namely in November 2025, inflation was recorded at 2.72 percent (yoy), mainly influenced by the decline in Volatile Food (VF) inflation to 5.48 percent (yoy), from 6.59 percent (yoy) in October 2025.

Airlangga assessed that this condition reflects the easing of food price pressures so that it helps maintain price stability and people's purchasing power.

In addition, core inflation remained stable at the level of 2.36 percent (yoy), signaling the expectations of maintained public inflation and the effectiveness of monetary and fiscal policy synergy.

On a monthly basis, November's inflation was largely triggered by rising prices of gold jewelery and air transport rates, amid weakening food commodity prices.

In November, gold jewelery experienced inflation of 3.99 percent (mtm) with a share of 0.08 percent. Meanwhile, air transportation rates rose 6.02 percent (mtm), and historically, it has tended to increase in the November period of the last five years

Airlangga said that the government would implement a transportation tariff discount program in December 2025 as an economic stimulus. This policy is expected to reduce air transportation rates.

"This policy is expected to be effective in maintaining people's purchasing power while at the same time encouraging increased mobility," he said in his statement, quoted on Tuesday, December 2.

He also explained that food inflation in November was mainly influenced by rising onion prices and a number of vegetable commodities due to high rainfall.

On the other hand, the price of broiler meat, red chilies, and broiler eggs began to fall after previously increasing. For rice commodities, it was recorded that the deflation was 0.59 percent (mtm) in November 2025, deeper than the previous month.

"This reflects the effectiveness of the Government's intervention in reducing price pressures in the midst of national food price fluctuations," he explained.

According to Airlangga, the stability of rice prices was strengthened by the distribution of Food Aid in the form of 10 kg of rice and cooking oil to 18.3 million KPM for the October period of November 2025.

He conveyed that the government has also intensified the Cheap Market Movement and the Food Supply Stabilization and Price program, especially ahead of Christmas and the 2026 New Year.

Airlangga added that the trade balance performance improved again with a surplus of 2.39 billion US dollars in October 2025.

This surplus was supported by exports of US$24.24 billion which was higher than imports worth US$21.84 billion.

Airlangga mengungkapkan bahwa hubungan dagang Indonesia' Amerika Serikat juga tetap positif di tengah proses negosiasi targa resiprokal.

In October 2025, the non-oil and gas trade balance surplus with the US reached USD 1.7 billion, driven by an increase in non-oil and gas exports by 4.43 percent (mtm) in line with the increase in US Manufacturing PMI.

Furthermore, the Indonesian Manufacturing Purchasing Managers' Index (PMI) again recorded strong performance, reaching an expansion level of 53.3 in November 2025, out of 51.2 in October 2025, the highest since February 2025.

Airlangga emphasized that this achievement marked four consecutive months of positive momentum in the manufacturing sector.

"This positive performance is mainly driven by improving domestic economic conditions that increase demand," he explained.

He explained that production activities have continued to increase to meet market needs, followed by a buildup of work that has occurred in the last eight months, thus encouraging companies to expand employment.

According to him, the increase in production also encourages the industry to increase the purchase of raw materials, strengthen economic growth through strengthening the relationship between the manufacturing sector.

Ahead of the Christmas and New Year holidays, the manufacturing sector is expected to still record strong performance.

Business actors also show high optimism for industrial prospects at the end of the year and enter the following year.

Airlangga menambahkan bahwa pemerintah telah menyiapkan beragam insentif, baik dari sisi permintaan maupun suplai, guna mendorong mobilitas masyarakat pada akhir tahun.

“Stimulus dan berbagai insentif di tengah permintaan domestik yang meningkat secara musiman menjadi pendorong tambahan. Hal ini didukung juga oleh kondisi inflasi yang terkendali dan meningkatnya daya beli masyarakat,” pungkas Airlangga.

Airlangga added that the government has prepared various incentives, both in terms of demand and supply, to encourage community mobility by the end of the year.

Stimulus and various incentives amid increasing domestic demand seasonally are additional drivers. This is also supported by controlled inflation conditions and increased people's purchasing power, "concluded Airlangga.