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KN-JAKARTA, Economic Affairs Coordinating Minister Airlangga Hartarto said that Indonesia’s probability of recession is below five percent, lower than that of the United States, Canada, and Japan. He added that Indonesia still has room for growth going forward, with the country targeting economic growth of 5.5 percent in the first quarter of 2026. He said that Indonesia’s economic resilience remains strong amid the Middle East conflict, which has disrupted trade routes, particularly in the energy sector. He explained that around 70 percent of Asian countries are highly dependent on the strait, but Indonesia receives only around 20 percent of its energy from the Middle East.
According to Airlangga, this condition makes Indonesia relatively more resilient to global shocks, particularly those related to domestic energy distribution.
Finance Minister Purbaya Yudhi Sadewa expressed optimism that Indonesia’s economic growth could reach eight percent within the next two to three years. This confidence is based on strengthening growth trends and various reforms currently being implemented by the government. He explained that Indonesia’s current economic growth stands at around five to 5.5 percent, with the latest realization recorded at 5.39 percent.
Bank Indonesia Governor Perry Warjiyo identified three critical challenges to sustaining national economic growth. These include restoring business confidence and aligning financing with priority national projects, strengthening domestic growth engines by maintaining consumption and increasing investment, and ensuring effective policy implementation across the business sector. Perry stressed that existing policy frameworks must translate into concrete actions to deliver direct economic impact.
Photo: Menteri Koordinator Bidang Perekonomian, Airlangga Hartarto, source: Wikipedia
