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Home»Explore by countries»Indonesia»Indonesia economy remains resilient amid global challenges: Minister
Indonesia

Indonesia economy remains resilient amid global challenges: Minister

By IslaApril 14, 20262 Mins Read
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Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia’s economy continues to demonstrate resilience amid persistent global challenges.

With global growth projections from the IMF, OECD, and World Bank ranging between 2.6 and 3.3 percent, Indonesia recorded 5.11 percent growth in 2025.

In a statement on Tuesday, Hartarto explained that this growth is among the highest recorded among G20 member countries.

The resilience of the national economy is supported by strong domestic demand including household consumption, investment, and government spending.

Household consumption remains the main driver and contributes 54 percent to GDP as reflected in recent spending indices, the Mandiri Spending Index.

In the food sector, rice production neared 34.7 million tons while state logistics agency Bulog reserves reached almost 4.6 million tons.

Regarding energy, the B50 program contributed to a surplus of 4.84 million kiloliters during the specified period.

“The economic growth projection for this year is above 5.3 percent with first-quarter growth estimated at around 5.5 percent,” the minister said.

In the second quarter of 2026, the economy remains strong with controlled inflation and a 70-month trade surplus, and high consumer confidence.

Manufacturing stayed in expansion at 50.1 while foreign reserves reached US$148.2 billion to maintain financial stability.

Increased exports of leading commodities such as coal, rubber, nickel, copper, and aluminum, which reached US$47 billion, provide protection against pressures in the oil and gas sector.

Meanwhile, the state budget continues to act as an economic buffer through various stimulus measures and food assistance.

Energy subsidies and transportation discounts totaling around Rp11.92 trillion have also been deployed to support the community.

“Meanwhile, Indonesia’s local currency transactions in 2025 increased to US$25.6 billion,” Hartarto noted in his statement.

He added that countries such as Malaysia, South Korea, and Thailand are already accepting Indonesia’s QRIS payment transactions.

Related news: Finance Minister confident Indonesia can defy World Bank’s growth cut

Related news: Indonesia’s economic fundamentals steady despite global pressures



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