Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the widespread protests last week would only have a short-term impact on the national economy, with recovery expected soon.

Speaking at the Press Conference on the Stability of the Indonesian Capital Market at the Main Hall of the Indonesia Stock Exchange (IDX) here on Monday, Hartarto conveyed optimism by citing Indonesia’s strong economic fundamentals, backed by data showing stability and growth.

Minister Hartarto emphasized that the Jakarta Composite Index (JCI) was on an upward trend throughout last week, even reaching an all-time high (ATH) at the 8,000 level.

“The JCI only experienced a decline during the major protest on Friday (August 29), which is why the government believes that this optimism still exists among us and must be preserved,” he said.

Indonesia’s economic growth remains resilient, with GDP expanding 5.12 percent year-on-year (YoY) in the second quarter of 2025. The Manufacturing Purchasing Managers’ Index (PMI) also improved to 51.5 in August, driven by an expansion in output and new orders—a significant rise from 47.4 in May, 46.9 in June, and 49.2 in July.

Meanwhile, the Rupiah exchange rate remained stable at Rp16,490 per US dollar as of Friday (August 29).

Looking ahead to data releases by Statistics Indonesia (BPS) later today, Hartarto expressed confidence that inflation will remain under control and the trade balance will continue to record a surplus for August 2025.

“This afternoon, the August inflation figures will be released, and we are confident that inflation remains under control,” he added.

Furthermore, Hartarto also pointed to a rise in investment, in line with a strong increase in capital goods imports, which grew by 32.5 percent YoY in the second quarter of 2025. The manufacturing sector also recorded positive growth of 5.08 percent YoY during the same period.

“This reflects ongoing construction of new factories and production facilities—indicating potential expansion in Q3 2025. Moreover, the high volume of money circulation and financial transactions across various provinces reflects robust economic activity on a spatial level,” he said.



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Translator: Muhammad Heriyanto, Kuntum Khaira Riswan
Editor: Azis Kurmala
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