Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia’s economy remains resilient amid global uncertainty.
This strength is reflected in 3 key indicators:
▪️ Inflation that remains under control
▪️ Manufacturing activity returning to expansion
▪️ Improved trade balance performance
Airlangga added that the government will continue to maintain a balance between price stability and economic growth to safeguard household purchasing power, boost business confidence, and strengthen national competitiveness.
“The government is optimistic that Indonesia’s economy will continue to grow sustainably, supported by controlled inflation, expansion in the manufacturing sector, and an improving trade balance,” said Airlangga in Jakarta, Monday (August 3).
Export Demand Still Weak
Indonesia’s inflation in July 2026 stayed within the target range of 2.5±1%, at 2.88% (yoy), better than June’s 3.34% (yoy).
Positive news also came from manufacturing. Indonesia’s Manufacturing PMI returned to expansion territory at 50.2 in July (up from 46.9), driven by stronger new orders that lifted output for the first time since February 2026. Companies even began hiring again for the first time in five months, responding to recovering demand.
On the other hand, Airlangga acknowledged that export demand remains weak as production cost pressures have not fully eased. Even so, industry optimism reached its highest level since January 2026.
Overall, Minister Airlangga assessed these achievements as strong signals that Indonesia’s economy is moving in a more positive direction.
“The government will continue to safeguard the sustainability of this trend through anticipatory and responsive policy measures, ensuring household purchasing power remains intact, industry grows more competitive, and the outlook for the national economy stays bright,” Airlangga concluded.
Sources: ekon.go.id
