Indonesia’s Minister of Finance, Purbaya Yudhi Sadewa, presented his views on the strength and resilience of Indonesia’s economy in an academic speech during a public lecture before the academic community of Nankai University in Tianjin, China, last week (19/6/2026).

In front of Nankai University President Chen Yulu, Executive Vice President Chen Jun, Vice President Sheng Bin, Professor Xingmin Li, and hundreds of students, Purbaya emphasized that Indonesia’s economic growth engine is currently in excellent condition, supported by sound, prudent, and well-maintained fiscal management, with the budget deficit consistently kept below the legal ceiling of 3%.

He explained that amid a stabilizing global market environment—marked by declining volatility and improving risk sentiment—Indonesia’s domestic economy has stood out positively.

This is reflected in the Q1 2026 economic growth of 5.61% year-on-year, placing Indonesia above the average growth rates of both G20 and ASEAN economies.

This strong performance is supported by well-controlled price stability. In May 2026, inflation was recorded at a contained level of 3.08%. The combination of strong growth and stable inflation further strengthens global market confidence in Indonesia’s macroeconomic policy credibility.

“Indonesia continues to stand out with Q1 2026 GDP growth of 5.61% yoy, outperforming many G20 and ASEAN economies. At the same time, we maintained price stability with May 2026 inflation at 3.08%. This demonstrates that Indonesia is entering this period with strong growth, controlled inflation, and credible policy resilience,” Purbaya said.

Furthermore, the Finance Minister noted that Indonesia is well-positioned to face global energy disruption risks, with low exposure and strong buffers.

Indonesia’s global energy resilience score reaches 77%, higher than China’s 76% and only slightly below South Africa’s 79%. This resilience is supported by disciplined and prudent fiscal policy.

A tightly controlled deficit below 3% provides sufficient space for the state budget (APBN) to act as a shock absorber against external shocks without compromising macroeconomic stability.

Purbaya stressed that all key indicators show Indonesia’s economic engine is gaining strength and becoming increasingly inclusive. This is reflected in a manufacturing PMI at an expansionary level of 50.0, money supply (M0) growth of 14.8% yoy, and bank credit growth of 11.5% yoy.

In addition, Indonesia’s external position is reinforced by a 72-month consecutive trade surplus and foreign exchange reserves of USD 144.9 billion, equivalent to 5.6 months of imports and government external debt payments.

Most importantly, this solid economic growth has translated into real improvements in public welfare through a stronger labor market.

Around 1.9 million new jobs were created, reducing the unemployment rate to 4.68% in 2026. Meanwhile, social protection programs have steadily reduced poverty from 8.57% in September 2024 to 8.25% in September 2025.

Purbaya explained that Indonesia is now entering an implementation phase with eight clusters of national priority programs that translate development strategies into tangible outcomes.

“These priorities include the foundations of national resilience such as food security, energy and water independence, education, healthcare, as well as infrastructure, housing, and disaster resilience,” the Finance Minister said.

At the same time, the government is accelerating structural transformation through downstream processing and industrialization, strengthening the people-based economy and rural development, and intensifying poverty reduction through integrated social assistance and employment programs.

These initiatives are reinforced by defense and security, law enforcement, governance, digitalization, and economic diplomacy to ensure development is not only growth-oriented, but also inclusive, resilient, and well-coordinated.

“This proves that Indonesia’s economic growth is not only strong at the macro level, but also translates into real job creation, poverty reduction, and more widespread and equitable prosperity,” he emphasized.

On this occasion, he also expressed gratitude for the opportunity to share Indonesia’s economic policy and fiscal management perspective at Nankai University.

“I hope this dialogue will strengthen academic exchange, deepen mutual understanding, and further enhance the friendship between Indonesia and China,” the Minister said.