President Prabowo Receives Report on National Economic Conditions, Ensures Stability Amid Global Dynamics

Coordinating Minister for Economic Affairs Airlangga Hartarto reports on the national economic conditions to President Prabowo Subianto during a Plenary Cabinet Meeting held at the State Palace, Jakarta, on Friday (03/13).

Coordinating Minister for Economic Affairs Airlangga Hartarto reported on the national economic conditions to President Prabowo Subianto during a Plenary Cabinet Meeting held at the State Palace, Jakarta, on Friday (03/13). In his report, Airlangga said that several macroeconomic indicators indicated the relatively strong and stable condition of the national economy.

Airlangga said that domestic consumption still becomes the main driver of national economic growth. This is shown by the consistently high contribution of household consumption to gross domestic product (GDP).

“First, from a macroeconomic perspective, we can say that domestic consumption is good, strong at 54 percent of GDP, and the Mandiri Spending Index is at 360.7,” he said in his report.

He also reported that Indonesia’s foreign debt ratio remains relatively low compared to many other countries worldwide. He said that the foreign debt to GDP ratio remains below 30 percent.

“Foreign debt is still low at 29.9 percent of GDP as of today. Below 30 percent, as of today, Sir,” Airlangga said.

He also said that Indonesia’s foreign exchange reserves are strong enough to maintain the national economic stability, adding that foreign exchange reserves currently stand at more than US$150 billion.

Furthermore, Airlangga said that Indonesia’s foreign trade performance also showed positive progress. Leading commodities exports, such as coal, rubber, nickel, and copper are considered to be able to make a significant contribution to the national economy.

“We also have national hedging, Sir, from the rising commodity exports, namely coal, rubber, nickel, and copper. These are likely to increase, Sir. So, our exports in these commodities amount to US$47 billion compared to the oil and gas deficit of US$19.5 billion. So, they naturally compensate each other,” he said.

He also highlighted the increasing use of local currency settlement (LCS) schemes in Indonesia’s international trade transactions with several partner countries. He said this step can help reduce pressure on the use of US dollar.

“Then, there is strong synergy with Bank Indonesia and also an increase in local currency settlements, Sir, with countries like Malaysia, Thailand, Japan, and China, which totaled US$25.56 billion, Sir. Compared to last year’s figure only US$12.9 billion,” said Airlangga.

On the occasion, Airlangga also explained the State Budget role as a buffer for national economic stability. The Government, he said, has prepared various spending programs to maintain public purchasing power, including food aid and religious holiday allowance (THR) payments.

“The State Budget also functions as a shock absorber, with Rp11.92 trillion for food aid and around Rp40 trillion for THR this year from the Government,” Airlangga said.

Meanwhile, regarding state revenue, Airlangga reported that tax revenue performance through early 2026 showed significant growth compared to the same period in the previous year. He also predicted that this positive trend would continue in March, in line with the tax reporting period, which commonly increases within that month.

“(Tax revenue) in March is also expected to be higher because all people are required to make a (tax) report in March, Sir,” he added.

The report is part of the Government’s efforts to ensure that national economic stability remains maintained amid the evolving global dynamics, while also strengthening the foundation for Indonesia’s future economic growth.  (BPMI of Presidential Secretariat) (JAS/AW)