Finance Minister Suahasil Says Indonesia’s Economy Remains Resilient Amid Fed Rate Hikes 

Jakarta: Indonesia’s state budget (APBN) remained strong and under control through the end of August despite global economic uncertainty driven by geopolitical tensions and interest rate hikes by the US Federal Reserve (the Fed). 

As of the end of August, state revenue had reached Rp2,055.6 trillion, or 65% of the target. Meanwhile, state expenditure stood at Rp2,295 trillion, resulting in a deficit of Rp240.1 trillion, equivalent to 0.93% of gross domestic product (GDP). 

Finance Minister Suahasil Nazara said national fiscal management remains on track with a positive primary balance.

“Through the end of August, APBN performance remained strong, with a positive primary balance. The deficit remains under control, which means the APBN implementation is relatively on track,” Suahasil Nazara said on Breaking News Metro TV on Friday, September 18, 2026.

Suahasil explained that the government continues to monitor global economic developments to formulate anticipatory measures, particularly after the Fed raised interest rates to 5%, with expectations that rates will remain elevated for an extended period, or “higher for longer.” Escalating geopolitical tensions in the Middle East have also added to volatility in global financial markets.

“Paying attention to global developments is important for us to prepare for potential economic challenges in Indonesia, and one of the measures we need to take is through the state budget,” Suahasil explained. 

Although global economic growth is projected to moderate, Indonesia’s economy is considered resilient. This resilience is supported by Indonesia’s 5.45% economic growth in the first half of the year and inflation maintained at 3.19%.

“If we look at Indonesia’s 5.45% growth in the first half of the year, followed by the 3.19% inflation figure reported recently, these figures give us sufficient confidence that Indonesia’s economy remains resilient,” Suahasil said.

He added that national economic resilience was supported by consumer spending, economic activity, and investment, which continued to grow positively amid varying growth rates among major trading partners. 

(Razaqa Hariz)