TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa lauded Indonesia's solid economic performance amidst global uncertainty, with high growth and low inflation rates. He also highlighted the continuous monitoring of monetary policies, especially those from the United States.
"We should be grateful that amidst the current global uncertainty, Indonesia's economy continues to show resilience," Purbaya said during a working meeting with the Commission XI of the House of Representatives on Wednesday, June 10, 2026.
Purbaya cited 5.61 percent growth during the first quarter of 2026, while inflation last month was controlled at a 3.08 percent y-o-y. Meanwhile, the trade balance also continued to record a surplus.
The manufacturing sector's performance showed improvement in May 2026, indicating an improved production activities and a positive sign for sustained economic growth.
As Indonesia entered the second quarter of 2026, domestic economic dynamics also showed signs of improvement. Consumers remain optimistic in their spending, reflected in the Money Spending Index and the Consumer Confidence Index of Bank Indonesia.
According to Purbaya, positive economic activities are reflected in the increased sales of cars, motorcycles, electricity, and cement. Meanwhile, the manufacturing sector is expanding again after experiencing pressure in April 2026.
Based on the data presented by Purbaya, the May 2026 manufacturing index was at 50.0, indicating stabilization in the manufacturing sector's performance.
Meanwhile, the trade balance recorded a surplus for 72 consecutive months. From January to April 2026, the trade surplus reached US$5.64 billion. Imports are still dominated by productive commodities such as capital goods and raw materials.
Credit growth in April 2026 reached 10.0 percent year on year (yoy), driven by a 19.5 percent yoy growth in investment credit. Inflation in May 2026 was recorded at 3.08 percent yoy or 0.26 percent on a month-to-month basis (mom).
Indonesia's foreign exchange reserves in May 2026 reached US$144.9 billion, equivalent to 5.6 months of imports.
The money supply (M0 non-adjusted) in May 2026 grew by 14.8 percent yoy. Foreign direct investment in the first quarter of 2026 reached Rp250 trillion, growing by 8.5 percent yoy. Meanwhile, foreign capital inflows recorded a net inflow of Rp 40.4 trillion until June 5, 2026.
According to the minister, the exchange rate growth until early June 2026 still faced pressure influenced by global sentiment, risk-off conditions in financial markets, and pressures from domestic travel and financial transactions.
The rupiah exchange rate against the US dollar until June 8, 2026, was at the level of Rp18,039 per US dollar. According to Purbaya, the rupiah's depreciation until early June was mainly triggered by global sentiment and risk-off conditions in financial markets.
Nevertheless, Purbaya believed the current rupiah rate is "overshot" and "undervalued." On the other hand, domestic fundamentals remain strong, reflected in adequate foreign exchange reserves, a controlled current account deficit (CAD), inflation within the target range, and Bank Indonesia's pro-stability response.
The government is optimistic that stronger synergy and coordination between fiscal, monetary, and financial sector policies, along with improvements in the management of export earnings and financial market deepening, will strengthen foreign exchange supply domestically and increase investor confidence.
Thus, Purbaya said, the rupiah is expected to gradually strengthen in the second semester of 2026. Foreign capital flows also show significant improvement in the second quarter of 2026, especially in Government Bonds (SBN) and Bank Indonesian Rupiah Securities (SRBI). Although the stock market still recorded outflows, investor interest in domestic financial instruments overall remains preserved.
Read: Palace Denies Reports That Chatib Basri Will Replace Purbaya
Click here to get the latest news updates from Tempo on Google News
Palace Denies Reports That Chatib Basri Will Replace Purbaya
1 hari lalu
Recently, news of the change in the Minister of Finance has become a public topic, as has the weakening of the rupiah.
Indonesia Shares Stabilization Strategies as Rupiah Slides Past 18,000
4 hari lalu
Bank Indonesia and Ministry of Finance prepare two strategies to maintain the rupiah exchange rate.
Prabowo Allowed to Self-Fund Overseas Trips, Purbaya Says
4 hari lalu
Finance Minister Purbaya Yudhi Sadewa said it is not prohibited for state officials to pay out of their pockets for official overseas travels.
Indonesia's Purbaya Projects 5.4% Economic Growth in 2026
4 hari lalu
As of the first quarter of 2026, economic growth was recorded at 5.61%, higher than last year's growth of 5.11% year-on-year.
Today's Top 3 News: Ivory Coast Beats France in World Cup Friendly
4 hari lalu
Here is the list of the top 3 news on Tempo English today.
How to Save Rupiah and JCI from Further Drops
4 hari lalu
An economist shared insights on how to save rupiah and the Jakarta Composite Index (JCI/IHSG) from weakening further.
Palace Dismisses Talks of Purbaya's Exit from Red and White Cabinet
5 hari lalu
There have been rumors circulating on social media about the plan to replace Finance Minister Purbaya Yudhi Sadewa.
What Purbaya Said About Rumors of His Resignation as Finance Minister
5 hari lalu
Purbaya Yudhi Sadewa denies rumors about his resignation as Finance Minister.
Rupiah Hits 18,000: How Is Purbaya Reacting to the Slump?
6 hari lalu
Finance Minister Purbaya Yudhi Sadewa addresses the rupiah's drop to Rp18,000 per US dollar.
Finance Minister Unconcerned as Rupiah Falls Past 17,800
13 hari lalu
Purbaya also said he was puzzled by the rupiah's weakness despite what he described as still-strong economic fundamentals.
:strip_icc():format(jpeg):watermark(kly-media-production/assets/images/watermarks/bola/watermark-color-landscape-new.png,1125,20,0)/kly-media-production/medias/5495647/original/074499000_1770385031-barba.jpeg)
