President Prabowo: Indonesia’s Economy Remains Firm Amid Global Uncertainty, Fiscal Discipline Maintained

President Prabowo Subianto emphasized that Indonesia’s economy continued to show strong resilience amid increasing global uncertainty. Economic growth remained stable, inflation has kept under control, while the State Budget continued to work to maintain both people’s purchasing power and fiscal discipline.

The statement was conveyed by President Prabowo in his state address during the Presentation of the Government Statement on the Bill on the State Budget for the 2027 Fiscal Year and its Financial Note at the Plenary Meeting marking the Opening of the First Session of House of the Representatives (DPR) for the 2026–2027 Parliamentary Year, at the Nusantara Building in the Parliamentary Complex in Jakarta, on Friday (08/14).

“We entered the year of 2026 amidst a dynamic global environment which is challenging. Energy prices have surged due to war. Global interest rates have skyrocketed and continue to increase. Pressures on various exchange rates have increased and geopolitical tensions continue to disrupt global trade,” the President stated.

Nevertheless, the Head of State noted that the Indonesian economy remained firm and resilient. In the first semester of 2026, Indonesia recorded its highest economic growth in 13 years, with inflation remained under control and strong domestic demand.

The President further highlighted the performance of the State Budget through the end of July 2026. State revenue surged to 21.3 percent compared to the same period of previous year, while state expenditure grew by 18.2 percent and continued to be geared at maintaining people’s purchasing power, strengthening public services, and driving the economy.

Though the state expenditure is growing, the State Budget deficit remained under control at 0.91 percent of Gross Domestic Product (GDP). According to the President, this proves that the commitment to the people would be able to go hand in hand with fiscal discipline.

“We do not choose between growth and prudence. We choose them both. We do not choose between assisting the people and maintaining the State Budget. We implement both,” the President emphasized.

Indonesia’s economic resilience also received positive assessments from international rating agencies. The President noted that on July 13, 2026, Standard & Poor’s (S&P) affirmed the BBB long-term sovereign credit ratings on Indonesia with a stable outlook, ensuring Indonesia remained at the category of investment grade.

“S&P assessed that Indonesia has prospects of robust economic growth, generally prudent macroeconomic policy settings, and relatively prudent and sustainable debt burden compared to peers,” he revealed.

In addition to S&P, the President also conveyed that China Lianhe Credit Rating placed Indonesia at AAA/stable rating, which is the highest rating in the issuance of Panda Bonds issuance for the Republic of Indonesia. The agency assessed that Indonesia’s economic fundamental was solid, government policies were effective, the economy was resilient to external shocks, and inflation remained under control.

“Honorable Plenary Session, we consider these assessments as reminders that credibility is built through consistency, hard work, and perseverance. The world does not view us solely by what we announce. It acknowledges us by what we actually deliver,” the President concluded. (BPMI of Presidential Secretariat) (YA/AW)