Indonesia’s Finance Minister Purbaya Yudhi Sadewa has pushed back against claims of an impending recession, dismissing such assessments as “strange” and asserting the nation’s economy is currently experiencing strong growth.
Minister Sadewa made the remarks during a cabinet meeting Friday, March 13, 2026, in the presence of President Prabowo Subianto. He directly criticized economists who predict economic collapse, stating, “Notice many saying we are already in recession, economists who are a bit strange saying we are already in recession, just waiting for the collapse.”
He explained that recent data indicates a positive economic trajectory. According to the Minister, Indonesia’s Purchasing Managers’ Index (PMI) reached 53.8 in February 2026, marking its highest level in several years.
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“This truly shows a strong improvement in the manufacturing sector, meaning the supply side is growing strongly. This isn’t data from BPS [Statistics Indonesia], but from another party confirming that our economy is indeed growing,” Sadewa stated.
Further supporting the positive outlook, the Minister highlighted the continued strength of the Mandiri Spending Index (MSI), which stood at 360.7 at the beginning of 2026. He noted an upward trend, indicating ongoing economic acceleration. “We are indeed experiencing acceleration,” he added.
Indonesia’s Consumer Confidence Index (CCI) reached 125.2 in February 2026, signaling an improvement in consumer purchasing power.
“In other words consumer purchasing power is truly good. Many people say that purchasing power is being hit. Well, those who are struggling are still struggling. But we look at the general situation, which is captured by consumer confidence surveys, so consumer purchasing power is indeed improving,” the Minister explained.
(fdl/fdl)
