Indonesia shows economic stability amid export growth and fiscal resilience

Indonesia is seeing diverse developments across its economic sectors. Economic experts from the University of Indonesia have noted positive indicators under the Prabowo-Gibran administration, including economic growth near 5 percent, controlled inflation around 3 percent, and declining unemployment. However, experts emphasize the need to strengthen the middle class and improve micro-level oversight to ensure inclusive growth.

In the trade sector, the Kopdes Merah Putih initiative is successfully driving village-based commodities into international markets. Notable exports include coffee from Jember to Egypt, charcoal from Konawe Selatan to China, fermented cocoa from Bali to France, and raw coffee beans from Magelang to Dubai. The government has mapped approximately 2,600 villages with high export potential.

Regarding fiscal stability, researchers suggest the 2026 state budget (APBN) remains resilient against rising global oil prices, with a projected deficit of 2.85 percent of GDP. Despite this, rising oil prices are expected to increase subsidy burdens for fuel and LPG to approximately Rp426 trillion.

In the industrial sector, Universitas Pertamina, in collaboration with Yale University and UNIDO, is promoting green chemistry through the GreenLink startup accelerator to drive sustainable manufacturing innovations.