Indonesia’s Finance Minister Defends Economic Growth Amid Recession Concerns

Jakarta – Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, has strongly refuted claims of an impending recession, asserting that the national economy is experiencing robust growth. His statements came during a Cabinet Meeting on Friday, March 13, 2026, in Central Jakarta, where he dismissed assessments from some economists as “strange.”

Economic Indicators Point to Strength

Minister Sadewa highlighted several key economic indicators supporting his optimistic outlook. He pointed to Indonesia’s Purchasing Managers’ Index (PMI), which reached 53.8 in February 2026 – the highest level in recent years. This indicates a strong improvement in the manufacturing sector, confirming economic expansion beyond data released by the Badan Pusat Statistik (BPS), Indonesia’s Central Bureau of Statistics.

Consumer Spending and Confidence Remain High

Further bolstering the positive assessment, Sadewa noted the continued strength of the Mandiri Spending Index (MSI), currently at 360.7 and trending upwards, signaling sustained consumer spending. He similarly emphasized the Consumer Confidence Index (IKK), which stood at 125.2 in February 2026, demonstrating improving purchasing power among Indonesians.

Minister Reports to President Subianto on Inflation

In a separate report earlier today, Minister Purbaya informed President Prabowo Subianto that February’s inflation rate was lower than initially anticipated as reported by Voi.id.

Minister Sadewa’s Leadership

Purbaya Yudhi Sadewa has served as Indonesia’s Minister of Finance since September 8, 2025, under President Prabowo Subianto according to Wikipedia. Prior to this role, he served as the 4th Head of the Indonesia Deposit Insurance Corporation from September 3, 2020, to September 8, 2025 as detailed on his Wikipedia page. He is also described as a “tough-talking, pro-growth” finance minister as reported by Reuters.

Defending Indonesia’s Economic Performance

Minister Sadewa has consistently defended his government’s economic policies and President Prabowo Subianto’s growth objectives as noted by Bloomberg. He has expressed a commitment to addressing concerns raised by investors and improving market conditions.