Jakarta. Despite global uncertainties from the Middle East conflict and the Russia-Ukraine war to trade tensions among major powers, Indonesia has managed to maintain stability, even outpacing some of its G20 peers, Chief Economic Affairs Minister Airlangga Hartarto said.

“With that progress, we hope global risks will become more predictable. Several international institutions also forecast the world economy to start recovering next year,” Airlangga said at the Investor Daily Summit (IDS) 2025 in Jakarta, on Wednesday.

He highlighted Indonesia’s solid second-quarter growth of 5.12 percent, outperforming many G20 peers such as Turkey (4.8 percent), Saudi Arabia (3.9 percent), and Brazil (2.2 percent), though still behind India (7.8 percent) and China (5.2 percent).

The upbeat performance is reflected in the Jakarta Composite Index (JCI), which recently hit a record high of 8,100, signaling rising investor confidence in Indonesia’s capital market.

Investment realization also jumped 13.6 percent to Rp 943 trillion ($57 billion) as of the second quarter. Airlangga expressed optimism that by the third quarter, investment could surpass Rp 1,400 trillion ($84.5 billion), underscoring the country’s strong fundamentals.

Indonesia’s foreign exchange reserves currently stand at $150 billion, sufficient to cover 6.2 months of imports, while public debt remains relatively low and inflation stable at 2.65 percent.

“Our fundamentals are healthier compared with many other countries. This is an important buffer against global volatility,” he said.

In the labor market, Airlangga pointed to significant progress. The open unemployment rate fell to 4.67 percent, its lowest since 1998. Meanwhile, purchasing power continues to strengthen amid a 6.5 percent average increase in minimum wages, bringing total employment to 145.77 million people.

Poverty has also reached a historic low of 4.8 percent, or 23.85 million people as of March 2025, down from 25.9 million a year earlier.

Airlangga further underscored the vital role of MSMEs in sustaining the economy. As of September 2025, 3.46 million MSME players have accessed financing through the government’s People’s Business Credit (KUR) program.

“The government will continue expanding financing access and strengthening the MSME ecosystem so they can move up the value chain and compete globally,” Airlangga concluded.

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