Jakarta, IO – Coordinating Minister for Economic Affairs Airlangga Hartarto expressed confidence in Indonesia’s economic resilience despite increasingly dynamic global challenges. He noted that the country’s overall economic performance remains strong, with Indonesia recording a 5.39% growth rate in the fourth quarter of 2025, ranking second among G20 member states, just behind India’s 7.40% growth during the same period.
Airlangga highlighted that domestic consumption remains robust, contributing 54% to the national GDP. “We also reported to the President that our consumption is strong. Our food security is relatively solid as well, with rice production reaching 34.7 million tons in 2025 and Bulog stock standing at 4.6 million tons as of April 8, 2026,” he said during a press briefing following the Cabinet Working Meeting in Jakarta on Wednesday, April 8.
Addressing global commodity price developments amid tensions in the Middle East, particularly crude oil, Airlangga explained that there is a potential two-week window due to the postponement of a U.S. strike. This has led to a decline in oil prices, with WTI crude falling to USD 96.7 per barrel and Brent crude to USD 95.23 per barrel.
On the fiscal front, the State Budget (APBN) continues to play a significant role, supported by a 14.3% increase in tax revenue, reaching Rp462.7 trillion by the end of the first quarter of 2026. Meanwhile, the Manufacturing PMI for March 2026 remained in expansion territory at 50.1.
The government is also preparing a range of strategic policies to sustain growth momentum and economic stability. One key initiative is the implementation of the B50 biodiesel program, which is expected to strengthen fiscal resilience. “We have agreed to implement B50 starting July 1, which will improve budget resilience through savings of up to Rp48 trillion,” he stated.
Furthermore, the government remains committed to maintaining fiscal discipline, particularly in managing debt and the budget deficit. “The President has emphasized keeping the debt-to-GDP ratio at around 40%, even though the legal threshold allows up to 60%. Similarly, the budget deficit will be maintained at around 3% through the end of the year,” Airlangga added.
Indonesia’s economic resilience also continued into the first quarter of 2026, supported by a Consumer Confidence Index (CCI) of 125.2, indicating an optimistic outlook, and foreign exchange reserves of USD151.9 billion, equivalent to six months of imports.
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“Therefore, the government remains optimistic that economic growth in the first quarter will stay strong, potentially reaching or exceeding 5.5%,” he said.
In the financial sector, the government continues to coordinate closely with Bank Indonesia, including implementing a triple intervention strategy in the domestic spot and non-deliverable forward markets to stabilize the rupiah. The BI Rate remains steady at 4.75%.
“The President has also instructed the continuation of bilateral currency swap arrangements with several countries, including China, Japan, Australia, Singapore, Malaysia, and South Korea, with more partnerships to be pursued going forward,” Airlangga noted.
In the energy and transportation sectors, the government has introduced policies such as adjusting aviation fuel prices through a government-borne VAT incentive (PPN DTP) of 11% for two months. This measure has helped limit domestic airfare increases to between 9% and 13%.
Regarding the Hajj pilgrimage costs, Airlangga emphasized that there will be no additional burden on pilgrims. “As we know, Hajj costs have already been reduced by Rp2 million. The impact of rising aviation fuel prices has been fully absorbed by the government, so there is no increase in Hajj expenses. This applies to around 220,000 pilgrims, with a budget allocation of Rp1.77 trillion covered by the State Budget,” he concluded. (eka)