Indonesia's Economic Fundamentals Remain Strong, Says Airlangga

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TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia’s economic fundamentals remain resilient despite ongoing global uncertainty.“Amid global dynamics still...

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Job creation also improved, with employment absorption reaching 706,569 workers, up 18.93 percent compared to the same period last year.Airlangga said these figures reflect investment’s role in boosting job creation and promoting more balanced economic development, including increased investment outside Java.Meanwhile, Bank Indonesia kept its benchmark interest rate, the BI Rate, at 4.75 percent to maintain exchange rate stability amid external volatility.The Manufacturing Purchasing Managers’ Index (PMI) stood at 50.1 in March 2026, remaining in expansion territory, with the first-quarter average also consistently above 50 and competitive within ASEAN.From the external side, Indonesia’s trade balance posted a surplus for 70 consecutive months, while foreign exchange reserves reached US$148.2 billion. The state budget deficit stood at 0.93 percent of gross domestic product (GDP) as of March 2026, reflecting fiscal discipline alongside measured spending expansion.Airlangga reaffirmed the government’s commitment to maintaining Indonesia as an attractive investment destination. Through the Task Force for Accelerating Government Programs to Support Economic Growth (P3M-PPE), established under Presidential Decree No. 4/2026, the government aims to ensure policies deliver tangible improvements in ease of doing business, including efforts to remove investment bottlenecks.He added that revisions to the 2025 Indonesian Standard Industrial Classification (KBLI), issued by Badan Pusat Statistik, are a key part of strengthening risk-based business licensing. The updates accommodate emerging sectors such as the digital economy, artificial intelligence, climate change mitigation, new business models, and financial services, including bullion banking.To provide regulatory clarity, the government has issued a joint circular involving the Investment Ministry, the Law Ministry, and BPS, outlining technical guidelines for KBLI adjustments without disadvantaging businesses.The policy includes automatic system-based updates and manual adjustments when companies amend their articles of association.Separately, the World Bank in April 2026 revised Indonesia’s economic growth projection for the year to 4.7 percent of GDP, slightly down from its earlier estimate of 4.8 percent.Read: Danantara Eyes $30 Billion Energy Investment in SingaporeClick here to get the latest news updates from Tempo on Google News","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.0","shortVersion":"4.42.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2629986089","isCrawlerRequest":true}