ASIATODAY.ID, JAKARTA – As global markets grapple with geopolitical fragmentation and slowing growth, Indonesia is moving in the opposite direction—advancing a quiet but decisive strategy.
The government has confirmed that most of its Comprehensive Economic Partnership Agreements (CEPA) have been completed, while simultaneously securing a new wave of large-scale investments from key strategic partners.
The announcement was delivered by Coordinating Minister for Economic Affairs Airlangga Hartarto during the Indonesia Economic Summit (IES) 2026 in Jakarta on Monday, February 3, 2026, held under the theme “Turning Volatility into Velocity: Accelerating Inclusive Growth Through Reform.”
Airlangga reaffirmed Indonesia’s long-standing position as a non-aligned middle power, committed to regional stability and multilateral cooperation, even as global uncertainty intensifies.
“It is crucial to strike a balance as a non-aligned country. And Indonesia can now announce that most of its CEPA negotiations have been concluded—with Canada, the European Union, Eurasia, and EREU,” Airlangga said.
Resilient Economy, Strengthening Domestic Foundations
While many economies continue to struggle with inflationary pressures and weakening demand, Indonesia’s economic indicators show a constructive trend.
The Manufacturing Purchasing Managers’ Index (PMI) stood at 52.6 in January 2026, marking six consecutive months in expansion territory. Consumer confidence remains resilient, and inflation is under control.
Externally, Indonesia has recorded a trade surplus for 68 consecutive months, with foreign exchange reserves exceeding USD142 billion.
On the financial front, the government is pressing ahead with capital market reforms focused on four core pillars: liquidity, transparency, governance and law enforcement, and market deepening—aimed at strengthening investor confidence and financial stability.
These gains are translating into tangible social outcomes. Poverty has fallen to single-digit levels, unemployment stands at 4.9%, the Gini ratio has declined to 0.375, and the Human Development Index (HDI) has risen to 75.9.
8% Growth Ambition and Rp12.83 Trillion Stimulus
Looking ahead, the government is targeting 8% economic growth as a key milestone toward Indonesia Gold 2045, with services, high value-added manufacturing, and industrial value-chain strengthening positioned as the main growth engines.
To safeguard short-term momentum, the government has allocated a IDR 12.83 trillion stimulus package to support purchasing power and domestic consumption.
“We have prepared IDR 12.83 trillion to support purchasing power and mobility,” Airlangga said.
The stimulus includes transport fare discounts during the Idulfitri period, mobility support, and measures to strengthen household consumption. The package is designed to be targeted and temporary, helping sustain domestic demand in early 2026.
Major Investments from Japan, Singapore, and the UK
Beyond trade agreements, Airlangga also revealed significant investment inflows set to be realized in 2026, particularly from Japan, Singapore, and the United Kingdom.
Japan, through its ASEAN Zero Emission Community initiative, has committed USD500 billion for the region, with approximately USD21.4 billion earmarked for Indonesia.
To date, around USD3.5 billion has been utilized, with the remainder in the investment pipeline. One flagship project highlighted is the 12,600-megawatt Cirebon power plant, which has been designated a national strategic project.
Cooperation with Singapore is also being intensified, including discussions on green energy exports, digital talent development, and broader human capital enhancement.
Meanwhile, collaboration with the United Kingdom is expanding across the energy and education sectors, including plans to establish 10 new STEM-M-focused universities in Indonesia with support from the Russell Group—notably the University of Cambridge, King’s College London, and Imperial College London.
Policy Consistency
Concluding his remarks, Airlangga stressed that policy consistency, reform continuity, and cross-sector collaboration remain Indonesia’s core assets in navigating global economic headwinds.
At a time when many countries are opting for caution, Indonesia is choosing acceleration—locking in trade agreements, attracting strategic investments, and reinforcing its domestic economy as both a shield against volatility and a new engine of growth. (AT Network)
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