Indonesia's economic engine in prime condition: Finance Minister

Indonesia's economy is robust and well-managed, according to Finance Minister Purbaya Yudhi Sadewa. Speaking at Nankai University in Tianjin, China, Purbaya asserted that the nation's economic growth engine is operating in prime condition, underpinned by healthy, prudent, and controlled fiscal management. He pointed to the budget deficit consistently staying below the 3 percent threshold mandated by law as evidence of this stability.

Purbaya shared insights into Indonesia's economic policies, fiscal management, and sustainable national development. He noted that Indonesia's economy continues to perform strongly despite a stabilizing global market, with reduced volatility and improved risk sentiment. This resilience is reflected in the first quarter of 2026, when Indonesia's economy grew by 5.61 percent year-on-year, surpassing the average growth rates of both G20 and ASEAN nations.

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I hope this dialogue will strengthen academic exchanges, deepen mutual understanding, and further enhance the friendship between Indonesia and China.

Furthermore, price stability has been maintained, with inflation recorded at 3.08 percent in May 2026. Purbaya stated this demonstrates Indonesia's entry into a period of strong growth, controlled inflation, and credible policy resilience. He also addressed Indonesia's advantageous position regarding global energy disruption risks, placing it in a low-exposure quadrant with strong buffers, boasting an energy resilience score of 77 percent. This strength, he explained, is supported by a healthy fiscal policy mix, allowing the state budget to act as a shock absorber against external volatility without compromising macroeconomic stability.

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Indonesia entered this period with strong growth, controlled inflation, and credible policy resilience.