President Prabowo Chairs Limited Meeting on Economic Stability, State Budget Efficiency

President Prabowo Subianto, on Tuesday (11/03), held a limited meeting with Red-and-White Cabinet ministers at the Merdeka Palace, in Jakarta. The meeting discussed the latest developments in the national economy, including inflation, a strengthened manufacturing sector, foreign capital flows, and State Budget management toward the year-end.

In a press statement after the meeting, Finance Minister Suahasil Nazara said Indonesia’s economic conditions continued to show positive developments. This is reflected in inflation remaining within the government’s target range, as well as an increase in the national manufacturing sector activities.

“We reported to the President about the latest economic developments. Yesterday, BPS-Statistics Indonesia released data showing inflation at 3.23 percent, within Indonesia’s target range. So, inflation is on track,” Suahasil told the media after the meeting.

He said further that the Government has set an inflation target of 2.5 percent with a tolerance of plus or minus 1 percent, or in the range of 1.5 to 3.5 percent. Thus, inflation of 3.23 percent is still in line with the projections and price control targets set.

“Yesterday’s inflation figure was 3.5 percent, in the range of 1.5 to 3.5 percent. This means that inflation is still on track, as estimated,” he said.

Apart from inflation, President Prabowo also received a report regarding the development of the Purchasing Managers’ Index (PMI) for Indonesian manufacturing, which showed a strengthening trend in October 2026. Suahasil said that the PMI index increased from around 52 to 54.

“This increase shows that our entrepreneurs envisage an increase in demand, allowing them to get ready to increase production by buying more input,” he said.

During the meeting, the Government also monitored developments in foreign capital flows entering the domestic financial market. Suahasil reported that foreign capital flows were still recorded as entering through Government Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI).

Meanwhile, regarding state finance management, Suahasil reported to the President that the realization of State Budget revenue and expenditure as of the end of October 2026 was still going, as planned. However, the Government has faced a heavy agenda in the last two months of the budget year, especially to optimize state revenues while ensuring government expenditure is effective.

“Then, I also reported that the State Budget as of the end of October was on track for revenue and expenditure. For state revenue, we have to collect around Rp600 trillion during November-December, and for state expenditure, we can still spend around Rp990 trillion,” said Suahasil.

President Prabowo also directed all ministries and institutions to maintain efficient state expenditure, even though budget absorption usually increases by year-end. Suahasil emphasized that accelerated budget realization is still permitted as long as it is carried out with good governance and produces output according to the planned targets.

“The last two months, as usual, are called State Budget operations; at the end of the year, it usually accelerates faster, bigger, that’s fine, but it must remain efficient. It must remain under good governance, and of course it must be carried out in accordance with the output targets set out when proposing the budget,” he concluded.  (BPMI of Presidential Secretariat) (JAS/AW)