National Economic Resilience Key to Facing Global Turmoil

Indonesia's economic resilience is paramount in the face of escalating global uncertainty, driven by geopolitical dynamics such as the Middle East crisis. This was a central theme at the Islamic Economic Outlook 2026 forum in Jakarta, where government, academic, and economic council representatives convened to discuss strategies for maintaining economic stability.

Erik Armundito, Director of Defense and Security at the Ministry of National Development Planning/Bappenas, emphasized that security stability is the primary enabler of welfare. He highlighted the need for Indonesia to bolster its anticipatory capacity and develop diverse policy scenarios to safeguard national stability. Concrete steps include modernizing defense equipment, strengthening the maritime defense industry, and preparing for information warfare and cyber threats in the digital public sphere, aligning with medium-term development plans.

Mochammad Firman Hidayat, Executive Director of Priority Economic Program Acceleration at the National Economic Council, acknowledged that global crises cause currency volatility and producer price increases. However, he asserted that Indonesia's economic fundamentals remain robust, with ample cash reserves, far from a 1998-style crisis. He stressed that global changes present both challenges and opportunities, underscoring the need for precise strategies.

Academically, Irfan Syauqi Beik, Dean of the Faculty of Economics and Management at IPB University, advocated for strengthening the domestic economy through a "growth through equity" paradigm. This approach, he argued, builds resilience by involving Micro, Small, and Medium Enterprises (MSMEs) as economic drivers. Beik also pointed to the significant potential of Islamic economic instruments, such as optimizing the global halal industry and leveraging waqf assets for state sukuk issuance to bolster fiscal strength. The panelists unanimously agreed that national resilience hinges on adaptive and inclusive policies, fostering synergy between economic and security strengthening.