April 14, 2026 | 06:44 pm
TEMPO.CO, Jakarta - The Coordinating Ministry for Economic Affairs claims that two back-to-back international acknowledgments have affirmed the resilience of Indonesia's economy amid heightening global geopolitical tensions and the impact of the Middle East conflict on the world stage. The two international institutions are the Asian Development Bank (ADB) and the global index provider, FTSE Russell.
Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, stated that the ADB’s Asian Development Outlook for April 2026 projects Indonesia's economy to grow at a stable 5.2 percent in 2026 and 2027, up from the 5.1 percent growth recorded in 2025.
Additionally, on April 7, 2026, FTSE Russell decided to maintain Indonesia's status as a Secondary Emerging Market. "The report stated that Indonesia is not being considered for inclusion in any downgrade watchlist," he said in an official statement on Tuesday, April 14, 2026.
According to Haryo, these two signals emerged amid global uncertainty due to the conflict in the Middle East, energy price volatility, and international trade tensions weighing on several countries in the region. The ADB's projection for Indonesia assumes an early stabilization of the conflict and sits above the 4.7 percent average subregional projection for Southeast Asia in 2026.
The ADB assesses robust domestic demand, controlled inflation within the government's target range of 2.5 percent, and calibrated monetary policy as three differentiating factors for Indonesia's performance compared to its regional peers.
In terms of growth drivers, the ADB noted the strengthening of household consumption in early 2026, supported by increased agricultural productivity and the seasonal effects of Ramadan and Eid al-Fitr. The continued development of public infrastructure and increased private sector participation in downstream investments are also considered to support economic momentum.
Solid inflows of foreign direct investment are reportedly helping to finance external imbalances while maintaining exchange rate stability. Well-directed fiscal policies are also considered to maintain household purchasing power and investment momentum. Meanwhile, the decision by FTSE Russell is seen as a reflection of the progress made in the capital market's ongoing structural reforms.
The institution highlighted the implementation of eight action plans to accelerate market integrity reforms, including increasing share ownership transparency, expanding investor classification into 39 categories, setting a minimum 15 percent free float, and implementing the High Shareholding Concentration (HSC) mechanism as an early warning for investors.
FTSE Russell, according to Haryo, also positions Indonesia in a classification equivalent to that of China and India. The Financial Services Authority (OJK) also welcomed the assessment as evidence that capital market reforms demonstrate positive and credible progress in the eyes of global index providers. The OJK referred to this result as a reflection of consistent efforts to improve market governance and transparency.
Furthermore, the government views these two acknowledgments as validation for its current macroeconomic policy direction, specifically maintaining domestic demand, strengthening fiscal foundations, upholding monetary credibility, and continuing structural reforms in the financial market.
The government also expressed its commitment to continue accelerating these reforms ahead of the FTSE Russell quarterly review in June 2026 and the MSCI review in May 2026, in a bid to ensure that Indonesia’s growth remains inclusive, sustainable, and resilient against external shocks.
Read: Rupiah Weakens as US Threat to Expand Blockade to Gulf of Oman
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