Indonesia's Economic Fundamentals Solid: Airlangga Hartato

 Jakarta: Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia's economic condition remains solid. He stated that this resilience is evidenced by the positive economic growth of 5.12 percent in the second quarter of 2025.

Fundamentally, Indonesia has solid resilience. Second-quarter performance recorded 5.12 percent year-on-year (economic) growth," he said during a press conference at the Indonesia Stock Exchange on Monday, September 1, 2025.

Airlangga revealed that Indonesia's manufacturing PMI has also returned to above 50 to 51.5 percent, indicating expansion. Meanwhile, the Jakarta Composite Index (JCI) reached an all-time high.

"The JCI also experienced momentum last week, reaching an all-time high. Last week, we saw the index rise 0.87 percent to 7,926, on August 25th, up 0.2 percent to 7,952, and yesterday, on August 29th, it fell 1.53 percent to 7,830," he said.

Economic Indicators Maintained

Furthermore, Airlangga stated that Indonesia's inflation is also under control, with figures for August 2025 to be released today. Meanwhile, the rupiah exchange rate remains stable at Rp16,490 per USD, despite depreciating 2.35 percent this year.

"The trade balance has also consistently maintained a surplus, and relatively good figures will be released today. Domestic consumption remains strong, public mobility remains high, retail spending, both offline and online, is increasing, and the government continues to encourage stimulus to boost purchasing power," he said.

While Bank Indonesia (BI) is working to stabilize the rupiah following the demonstrations a few days ago.

"BI reaffirms its commitment to maintaining exchange rate stability and adequate rupiah liquidity," said Erwin Gunawan Hutapea, Head of the Monetary and Securities Asset Management Department (DPMA), in an official statement on Monday, September 1, 2025.

He explained that Bank Indonesia is present in the market to ensure the rupiah exchange rate moves stably through well-functioning market mechanisms. Stabilization efforts, or interventions, are carried out through the non-deliverable forward (NDF) market in the offshore market, and interventions in the domestic market through spot transactions, DNDF, and Government Securities (SBN) in the secondary market.

"This is to ensure the rupiah continues to move in line with its fundamentals," said Erwin.

BI also maintains adequate rupiah liquidity by providing liquidity access to banks through repo transactions, FX swap transactions, and SBN purchases in the secondary market, as well as lending facilities, or the provision of rupiah funds.