President Prabowo Chairs Cabinet Meeting on Economic Stability

President Prabowo chairs Cabinet Meeting with several Ministers of the Cabinet and the Financial System Stability Committee, on Tuesday (5/5).

President Prabowo Subianto on Tuesday (5/5) led a Cabinet Meeting with several Ministers of the Red and White Cabinet and the Financial System Stability Committee (KSSK) at Merdeka Palace, Jakarta. During the meeting, they discussed the report on the national economy, which shows a positive performance in the first quarter of 2026.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that Indonesia’s economic growth of 5.61% is among the highest of the G20 countries. “So, our economic growth is above China, Singapore, South Korea, Saudi Arabia, and even the USA. This growth surpassed forecasts from many institutions, which stated at around 5.2%,” Airlangga said in a press statement.

He explained that the growth was achieved from a significant increase in consumption and government expenditure, as well as export-import positive performance. Various business entities also show positive growth.

“Export-import [performance] is positive. Businesses, industries, trades, government administration, services, warehousing transportation, farming, and construction run well,” he continued.

Regarding the macroeconomic indicator, the Government recorded some achievements in maintaining economic stability. Inflation is under control, consumers’ trust remains high, and trade balance records a surplus.

“About the macroeconomic indicator, inflation has been successfully lowered to 2.42%, from 3.48% in the previous period, in March,” said Airlangga.

“The credit growth rate is 9.49%, and third-party funds, which also means consumers’ trust, is as high as 13.55%,” he continued.

During the meeting, President Prabowo highlighted a recent capital outflow in the money market. The Government and related institutions have analyzed the causative factors and prepared mitigation measures.

Furthermore, the Government agreed on strengthening coordination between the Central Bank, Bank Indonesia, and Ministry of Finance for financial stability and the exchange rate. The meeting also discussed  a regulation on foreign exchange from natural resources export (DHE SDA) that will take effect immediately.

According to the Coordinating Minister, the amendment to Government Regulation Number 36 has been finalized and will apply on June 1, 2026. In this regulation, natural resource exporters are required to keep export proceeds in state-owned banks and the amount can be converted to rupiah at a maximum of 50%. Furthermore, same as the previous regulation, exporters in the oil and gas sector are still required to place the proceeds for at least three months.

The cabinet meeting emphasized the policy direction of President Prabowo’s administration to maintain stability as the main foundation and to ensure an inclusive and sustainable growth. Indonesia has shown its resilience and optimism amid global uncertainty. (BPMI of Presidential Secretariat) (RD/MMB)