March 24, 2026 | 10:29 am
TEMPO.CO, Jakarta - The Indonesian Ministry of Coordinating Economic Affairs has responded to the results of a survey conducted by the Institute for Economic and Social Research at the Faculty of Economics and Business, University of Indonesia (LPEM FEB UI), which indicates that 48% of economists perceive Indonesia's economy is declining. Haryo Limanseto, the spokesperson for the Coordinating Ministry for Economic Affairs, stated that the government respects the survey's results as part of the input and public perception.
"We just need to add that Indonesia's economic fundamentals remain strong and resilient, supported by several key factors," said Haryo to Tempo on Monday, March 23, 2026.
First, he mentioned that macroeconomic stability remains maintained. This condition is reflected in Indonesia's economic growth in 2025, reaching 5.11 percent year on year. Haryo also noted that inflation remains within the target corridor of 2.5 plus minus 1 percent, despite short-term pressures that are being responded to through inflation control and price stabilization.
Secondly, Haryo mentioned that domestic demand and the real sector are strong. He stated that public consumption continues to be the main support, driven by fiscal stimulus and social assistance. This condition is supported by expansive manufacturing activities, reflected in the Purchasing Managers' Index of 53.8, which is the highest level in the past two years.
Thirdly, Haryo stated that fiscal resilience is maintained. He mentioned that the performance of the state budget (APBN) remains solid, with tax revenues growing by 30.4 percent year on year until February 2026. "Tax reform and digitalization (Coretax) continue to strengthen revenue bases and improve compliance," he said.
Fourthly, Haryo mentioned that food and energy resilience is strengthening. According to him, Indonesia has achieved food self-sufficiency for several main commodities, as well as energy surplus through the biodiesel program. Fifthly, Haryo said that economic transformation continues. The government, he said, continues to encourage downstreaming, investment, and digitalization as new sources of growth.
Prior to this, based on the Survey of Economists for the first half of 2026 released by LPEM, 41 out of 85 economists, or equivalent to 48 percent, perceive that Indonesia's current economic condition is deteriorating compared to the previous quarter.
"These results are still consistent with the previous survey perceptions in October and March 2025, showing that after three consecutive surveys within an 18-month period, experts still believe that Indonesia's economic conditions have not improved," wrote the LPEM UI team in their report, as quoted on Sunday, March 15, 2026.
If detailed, 35 economists answered that the economic condition is worse and 6 answered much worse. Then, 32 economists answered that the condition has not changed compared to three months ago. As for the rest, 12 economists answered that the condition is better compared to three months ago.
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