Indonesia's economy remains stable amid global volatility: KSSK

Jakarta (ANTARA) - Indonesia's fiscal, monetary, and financial sectors remained stable in the first quarter of 2026 amid rising global market volatility due to the escalating conflict in the Middle East, according to the Financial System Stability Committee (KSSK).KSSK Chairman and Finance Minister Purbaya Yudhi Sadewa said at a press conference on Thursday that developments surrounding the Middle East conflict remained a major factor behind global financial market volatility, particularly amid rising energy prices.

Based on these developments, Purbaya said Indonesia would continue monitoring and conducting forward-looking assessments of the economy and financial sector amid rising global uncertainty.

In addition, KSSK is carrying out coordinated mitigation efforts among its member institutions and other ministries and agencies.

"The global economy remains full of uncertainty, and we will stay vigilant. Domestically, we saw fairly strong growth in the first quarter at 5.61 percent," Purbaya said.

He added that the government would continue monitoring economic conditions in the second quarter while remaining alert to potential risks and macroeconomic variables.

"It appears the government will continue providing additional stimulus to the economy in the second quarter of 2026," he said.

From the fiscal side, Purbaya said spending acceleration remained strong, supported by holiday allowance (THR) disbursement ahead of Eid, spending under the Free Nutritious Meals (MBG) program, and social assistance programs.

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Capital spending was also optimized to support growth through road, irrigation, network, machinery, and equipment rehabilitation projects.

Purbaya said the State Budget acted as a shock absorber against global oil price fluctuations and global economic pressures, allowing Indonesia's economy to maintain solid growth in the first quarter.

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"We will do the same in the second quarter and through the end of the year to ensure domestic demand remains strong and the economy continues to grow well," he said.

The government will continue striving to achieve this year's 6.4 percent growth target.