Jakarta: Minister of Finance Purbaya Yudhi Sadewa expressed relief as Indonesia weathered through global economic turmoil.
Speaking at an online Working Meeting of the Regional Representative Council (DPD RI) on Monday, June 22, 2026, Purbaya remarked that the global economy was still facing uncertainty, though pressures had begun to ease over the past week.
According to Purbaya, growing prospects of a peace agreement between the United States and Iran have helped to reduce volatility and uncertainty in global financial markets. Amidst these tensions, nearly all countries have faced economic pressure, yet Indonesia's performance remained relatively stronger than its peers.
“Thank God, despite global uncertainty, the Indonesian economy continues to demonstrate resilience,” Purbaya said.
He pointed towards the first quarter of 2026 as evidence that the Indonesian economy remained resilient. During that period, economic growth reached 5.61 percent, whilst inflation remained under control at 3.08 percent. Indonesia also recorded a trade surplus for the 72nd consecutive month through April 2026. Moreover, foreign exchange reserves remained adequate – equivalent to 5.6 months of imports – whilst credit distribution remained in the double digits, with liquidity staying strong.
National Bank Credit Growth Purbaya noted that national bank credit grew 11.51 percent year-on-year (yoy) in May 2026. That figure, he claims, served as evidence that real economic activity was continuing to perform well.
“That figure was not generated by the government; it is taken from the banks’ data. Economic growth remains strong, exhibiting that there has been genuine improvement in the economy,” he emphasized.
Meanwhile, the manufacturing sector returned to the expansionary zone, with the Purchasing Managers' Index (PMI) climbing back to 50. He believes that the rebound served as a positive signal for national industrial activity.
Domestic economic activity has also shown improvement, as reflected in the continued strong household consumption. The Consumer Confidence Index rose to 123 in April 2026, indicating improved purchasing power that helped support economic growth at the beginning of the year.
The finance minister added that various other economic indicators displayed positive trends. Electricity sales continued to grow in April 2026, whilst car and motorcycle sales increased significantly following the Eid al-Fitr holiday period; car sales grew by around 55 percent, whilst motorcycle sales increased by 28.1 percent.
“I was also worried earlier whether the complaints being voiced on social media were true. When we saw the figures grow, I felt somewhat relieved; it was not as bad as expected,” Purbaya confessed.
Another indicator bolstering the government's optimism was domestic cement consumption, which grew 35.6 percent yoy in April 2026. He explained that the figure aligned with ongoing investment activity.
“So, it is not just the gross domestic product (GDP) figures; the non-GDP figures also point towards strong economic growth. I was worried that the second month would see a sharp drop, but I am relieved – it remains strong," said Purbaya.
Prospects for Peace Between the United States and Iran In the financial sector, Purbaya acknowledged that the markets had faced pressure in recent months. However, strong coordination between the fiscal, monetary, and financial sector policies had succeeded in maintaining stability.
This was reflected in the strengthening of the rupiah exchange rate, a rebound in the stock market, declining bond yields, and the return of foreign capital inflows; all signs of improving market confidence.
Purbaya hopes that peace between the United States and Iran will further strengthen global economic stability. If global oil prices decline, pressure from energy costs and domestic inflation would also ease, allowing economic growth momentum to strengthen further.
“But that has already caused a commotion,” he said, referring to the impact of the Pertamax price increases driven by a recent surge in global oil prices.
Nevertheless, he remains optimistic that declining global oil prices will strengthen Indonesia’s economic foundation. According to him, the global turmoil that had occurred earlier served as a major test for the national economy, but various indicators have shown Indonesia to be resilient.
“Based on the data we are seeing now, it appears that we have weathered the roughest patch,” Purbaya exclaimed.
He added that although current economic conditions were not yet ideal, various mitigation measures taken by the government had helped to maintain positive economic growth amidst global turmoil.
With improving geopolitical conditions and lower energy prices, Purbaya hopes that Indonesia's economic performance in the second half of 2026 will become even stronger.
(Jonathan Sianto)
Indonesia’s Economy Has Weathered Global Turmoil: Purbaya
