ASIATODAY.ID, TIANJIN — Indonesia is emerging as one of the world’s fastest-growing major economies, with Finance Minister Purbaya Yudhi Sadewa declaring that the country’s economic engine is running at full speed thanks to strong growth, controlled inflation, and resilient fiscal management.
Speaking before academics and students at Nankai University in Tianjin, China, Purbaya projected confidence in Indonesia’s economic trajectory, highlighting a combination of robust domestic demand, sound public finances, and rising investor confidence that has allowed Southeast Asia’s largest economy to outperform many of its regional and global peers.
“Indonesia entered this period with strong growth, controlled inflation, and credible policy resilience,” Purbaya said during a public lecture attended by Nankai University Rector Chen Yulu and senior university officials.
The minister pointed to Indonesia’s first-quarter 2026 economic growth of 5.61% year-on-year, a pace that exceeded the average growth rates recorded by both G20 economies and ASEAN peers. Inflation remained firmly under control at 3.08% in May, reinforcing confidence in the country’s macroeconomic management amid lingering global uncertainty.
The strong performance comes as many major economies continue to grapple with sluggish growth, trade disruptions, and geopolitical tensions. Indonesia, by contrast, has benefited from stable domestic consumption, ongoing industrialization, and disciplined fiscal policies.
Several key indicators suggest that economic momentum remains intact. Manufacturing activity stayed in expansion territory with a Purchasing Managers’ Index (PMI) reading of 50.0, while broad money supply expanded by 14.8% year-on-year. Bank lending also remained strong, growing 11.5%, signaling healthy business activity and consumer demand.
On the external front, Indonesia’s resilience has been underscored by a remarkable 72 consecutive months of trade surpluses, one of the longest streaks among major emerging economies. Foreign exchange reserves stood at US$144.9 billion, equivalent to 5.6 months of imports and government external debt payments, providing a substantial buffer against global market volatility.
Purbaya stressed that the country’s economic achievements extend beyond headline growth figures. Indonesia created approximately 1.9 million new jobs, helping reduce the unemployment rate to 4.68% in 2026. Meanwhile, poverty levels continued to decline, falling from 8.57% in September 2024 to 8.25% in September 2025, supported by targeted social protection programs.
The minister argued that these developments demonstrate how Indonesia’s economic expansion is translating into tangible benefits for ordinary citizens through job creation, poverty reduction, and broader improvements in living standards.
The remarks come as Indonesia seeks to strengthen economic ties with China while positioning itself as one of Asia’s most attractive destinations for investment. With fiscal stability intact, inflation under control, and growth consistently above 5%, Jakarta is increasingly presenting itself as a rare bright spot in an uncertain global economy.
For investors watching emerging markets, Indonesia’s message from Tianjin was clear: the country’s economic engine is accelerating, and its fiscal foundations remain firmly intact. (AT Network)
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