March 11, 2026 | 05:53 pm
TEMPO.CO, Jakarta - Indonesia's current economy is strong enough to withstand pressure from the global economic turmoil, said Finance Minister Purbaya Yudhi, while urging the public not to worry about the impact of the US-Israel war against Iran.
"No need to be afraid, friends, as we are able to control the negative impacts thanks to our strong position," said Purbaya during the APBN KiTa press conference on Wednesday, March 11, 2026.
Purbaya mentioned that domestic macroeconomic stability is maintained amid increasing global geopolitical tensions. The government is even optimistic that economic growth will reach 5.5 to 6 percent in the first quarter of 2026, higher than the last quarter of 2025 at 5.39 percent.
According to him, the faster growth trend at the beginning of the year reflects strengthened economic activities.
Purbaya also outlined several indicators that mark a positive economic performance, including the record high Purchasing Managers' Index (PMI) for manufacturing, which reached 53.8 in February 2026.
Indonesia's economic resilience remains strong, with a trade surplus recorded for 69 consecutive months. Additionally, the foreign exchange reserves are also at a level deemed adequate, at US$152 billion.
He assessed that economic activities started to strengthen since the beginning of the fourth quarter of 2025 and this trend continued into early 2026, boosting public confidence.
Purbaya also said that the public's purchasing power shows improvement, especially approaching the Ramadan and Eid al-Fitr season, reflected in the Mandiri Spending Index, which reached 360.7 in February 2026.
According to him, this improvement was driven by an increase in consumption in the consumer goods, education, and community-mobility sectors.
In addition, several domestic consumption indicators also show positive trends. Retail sales remain on growth, while the consumer confidence index is still at a high level.
Purbaya assessed that these conditions indicate that household consumption is still solid and the public's expectations regarding the economic conditions remain optimistic.
He also highlighted the performance of the automotive sector, which reflected an improvement in the public's purchasing power. Car sales recorded a double-digit growth of 12.2 percent in February 2026. Meanwhile, motorcycle sales also continue to show positive growth at around 1 percent.
According to Purbaya, these indicators show a significant improvement in the public's purchasing power. The government estimates that this trend will continue to improve in the upcoming period.
Read: Minister Purbaya: Indonesia Could Withstand Global Market Turmoil
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