Jakarta, IDN Times – The Ministry of Finance (Kemenkeu) has recently unveiled the robust performance of Indonesia’s economy during the nascent phase of President Prabowo Subianto and Vice President Gibran Rakabuming Raka’s administration. Febrio Nathan Kacaribu, Director General of Economic and Fiscal Strategy (DJSEF), confidently asserted that the national economic performance has been notably strong, even surpassing that of many peer nations globally.
“If we take a moment to review the past year under the Prabowo-Gibran government, it certainly hasn’t been poor. This is often a subject of narrative battles,” Febrio stated during the Investortrust Economic Outlook 2026, themed ‘2026, The Year of Expansion,’ held in Jakarta on Wednesday, November 5, 2025.
He further elaborated, “The underlying performance is far from disappointing. In fact, in several key areas, we are significantly outperforming many of our international counterparts.”
1. Indonesia’s Economy Maintains Stable 5 Percent Growth
Febrio highlighted Indonesia’s remarkable ability to sustain its overall economic growth at a stable rate, consistently hovering around the 5 percent mark. He provided a detailed breakdown, noting that in the first quarter, growth stood at 4.87 percent, subsequently accelerating to 5.12 percent in the second quarter of 2025.
“Our economic growth has remained stable, with a precise figure of 4.87 percent in Q1, then impressively rising to 5.12 percent in Q2. This brings our overall performance for the first half of the year to a robust 5.0 percent,” Febrio explained, underscoring the nation’s consistent economic momentum.
2. Manufacturing Sector and IHSG Signal Positive Momentum
Further bolstering the positive outlook, Febrio detailed the encouraging signals emanating from Indonesia’s manufacturing sector. The latest data for the Manufacturing Purchasing Managers’ Index (PMI) registered a robust expansion, reaching an impressive 51.2.
“This marks a clear turnaround, even though we have only implemented minor policy adjustments. This data, current as of late September, clearly indicates that the reversal is directly attributable to the impact of our recent policy initiatives,” Febrio clarified, emphasizing the effectiveness of governmental actions.
Complementing this manufacturing strength, Indonesia’s Composite Stock Price Index (IHSG) has also delivered stellar performance, achieving several all-time highs recently.
“We have witnessed our IHSG reach all-time highs on multiple occasions, including just yesterday. Today might see a slight consolidation,” Febrio observed, highlighting the strong investor confidence in the Indonesian market.
3. Relatively Low Government Bond Yields Boost Investor Confidence
Febrio also emphasized the strong performance of Indonesia’s Government Securities (SBN), presenting them as a crucial indicator reflecting both global and domestic confidence in the nation’s fiscal governance. The stability of SBN yields serves as a testament to prudent economic management.
He noted that Indonesia’s 10-year SBN yield, as of October 16, reached an impressive 5.91 percent – its lowest level since 2021. This remarkably low yield signals high market confidence in Indonesia’s capacity to meet its debt obligations, showcasing its financial reliability amidst global uncertainties.
“It is important for us to recognize, and this often goes unnoticed by the public, that in many other countries, the trend for such indicators is not nearly as positive. For instance, if we look at Brazil, Argentina, or Mexico, their interest rates are well above 10 percent,” Febrio elaborated, drawing a compelling comparison that underscores Indonesia’s superior fiscal standing.
Summary
The Ministry of Finance has affirmed Indonesia’s robust economic performance in the initial phase of the Prabowo-Gibran administration, stating it surpasses many international counterparts. Febrio Nathan Kacaribu, Director General of Economic and Fiscal Strategy, reported that national economic growth remained stable at approximately 5 percent, with 4.87 percent in Q1 and accelerating to 5.12 percent in Q2 2025, culminating in a 5.0 percent growth for the first half of the year.
Key positive indicators further supporting this outlook include the manufacturing sector’s Purchasing Managers’ Index (PMI) expanding to 51.2, and Indonesia’s Composite Stock Price Index (IHSG) achieving multiple all-time highs. Moreover, the 10-year Government Securities (SBN) yield reached a low of 5.91 percent as of October 16, its lowest since 2021, reflecting strong investor confidence in Indonesia’s fiscal management compared to other nations.
