Jakarta, Indonesia Sentinel — Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto said that a wave of demonstrations across the country will not derail its long-term economic outlook. He urged businesses and investors to remain calm and optimistic amid Indonesia social and political tensions.
Speaking at a press conference on capital market stability at the Indonesia Stock Exchange in Jakarta, Airlangga stressed that the government is committed to strengthening the capital market as a key pillar of the national economy.
“Market stability is critical to maintaining investor confidence, ensuring a conducive environment for trading, and supporting sustainable economic growth,” he said, on Monday (1/9/2025).
Airlangga noted that the country’s fundamentals remain solid. Indonesia’s foreign exchange reserves stood at $152 billion in July 2025, supporting trade performance for both import and export.
The banking system remains healthy and policy coordination between fiscal, monetary, and real sectors is intact.
The economy grew 5.12% year-on-year in the second quarter of 2025, while the manufacturing Purchasing Managers’ Index (PMI) rose to 51.5 in August, signaling expansion after months below 50.
The Jakarta Composite Index (IHSG) also hit a record high of 8,000 last week before slipping briefly during mass protests on Aug. 29.
“The decline only happened during Friday’s demonstrations. The government believes optimism is still with us, and we must preserve it,” Airlangga said, as reported by Antara
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Government is confident that short-term volatility will not alter the country’s positive economic trajectory. He added that maintaining growth above 5% remains a realistic target.
“The goal of sustaining growth above 5% is both realistic and achievable, with a full commitment to safeguarding macroeconomic stability and public welfare,” Airlangga said.
He stressed the government’s capacity and determination to preserve national economic stability. “We all have a moral responsibility to keep the economy moving so that jobs and people’s welfare are protected,” he added.
Airlangga also said the government would continue active engagement with investors and listed companies to ensure investment plans proceed without disruption.
(Raidi/Agung)
