Business · Economy · 13 hrs ago
Indonesia’s finance minister says strong indicators can help weather global pressures
Global tensions and high oil prices are putting pressure on Indonesia’s economy, alongside risks of slower world growth and higher inflation.
Finance Minister Suahasil Nazara said Indonesia can withstand these pressures because its economic indicators remain solid.
The economy grew 5.45% year on year in the first half of 2026, while inflation was 3.28% through September, within the government’s target range.
Manufacturing activity was also expanding, with the September purchasing managers’ index at 52.4; a reading above 50 signals growth.
Trade and lending figures also showed strength: Indonesia had a US$7.25 billion trade surplus from January to August, and credit grew 13.26% in September.
Foreign investors had brought in Rp127.7 trillion by 23 October, through government bonds and Bank Indonesia rupiah securities.
The global pressures could slow growth and push up inflation, which may squeeze people’s purchasing power.
Finance Minister Suahasil Nazara said Indonesia’s strong economic indicators could help it withstand global pressures.
He cited first-half economic growth of 5.45% year on year, controlled inflation and an expanding manufacturing sector.
The pressures include Middle East geopolitical tensions, ongoing wars and high crude oil prices.
Indonesia also recorded a trade surplus, credit growth and foreign investment inflows, according to Suahasil.
- Who
- Finance Minister Suahasil Nazara.
- What
- He said strong economic indicators could help Indonesia face global pressures.
- When
- October 30, 2026.
- Where
- At a KADIN national leadership meeting at Hotel Borobudur in Jakarta.
- Why
- He cited solid economic conditions, including growth, controlled inflation and an expanding manufacturing sector.
This story does not have two clearly opposing sides.
Indonesia’s economy grew 5.45% year on year, driven by domestic demand, investment and government policy support.
Indonesia recorded a trade surplus of US$7.25 billion.
Inflation was 3.28% year on year, and the manufacturing PMI stood at 52.4.
Credit grew 13.26%, supported by strong investment lending.
Suahasil said cumulative foreign inflows had reached Rp127.7 trillion.
Suahasil spoke at a KADIN national leadership meeting in Jakarta.
- First-half growth
- 5.45% year on year
- Inflation through September
- 3.28% year on year
- Manufacturing PMI in September
- 52.4
- Trade surplus, January–August
- US$7.25 billion
- Credit growth in September
- 13.26%
- Cumulative foreign inflows by October 23
- Rp127.7 trillion
What people are saying
Our capital amid a global situation that is heating up and perhaps moving slightly toward being hot, as mentioned earlier, is our macroeconomic condition, which is very good by the indicators.
A PMI above 50 is an indication that says our business players are optimistic that there will be additional demand, and therefore they are buying more inputs.