Jakarta. The Economic Affairs Ministry said Indonesia’s economic resilience continues to gain global recognition, as reflected in two international assessments released within less than a week amid rising geopolitical tensions and spillovers from the Middle East conflict.

In a press release, the ministry pointed to projections by the Asian Development Bank (ADB), which forecast Indonesia’s economy to grow steadily at 5.2% in 2026 and 2027, up from 5.1% in 2025, as outlined in its Asian Development Outlook April 2026: The Middle East Conflict Challenges Resilience in Asia and the Pacific. Around the same time, global index provider FTSE Russell, on April 7, 2026, reaffirmed Indonesia’s capital market status as a Secondary Emerging Market and explicitly stated that it is not considering the country for inclusion in a downgrade Watch List.

The ministry said both signals came amid heightened global uncertainty driven by the Middle East conflict, energy price volatility, and escalating trade tensions, which have pressured several economies in the region. It noted that ADB’s outlook for Indonesia is based on an early stabilization scenario in the Middle East and stands well above the Southeast Asia subregional projection of 4.7% for 2026, reflecting structural strengths that differentiate Indonesia from most of its regional peers.

ADB highlighted resilient domestic demand, controlled inflation at around 2.5% within the government’s target range, and well-calibrated monetary policy as key pillars supporting Indonesia’s performance.

On growth drivers, the ministry said ADB observed that early 2026 momentum has been supported by stronger household consumption, boosted by improved agricultural productivity and seasonal factors from Ramadan and Idulfitri, continued public infrastructure development, and rising private sector participation in downstream investments. Solid foreign direct investment inflows have helped finance the external gap while maintaining exchange rate stability, while targeted fiscal policy has supported both purchasing power and investment.

The ministry added that the recognition by FTSE Russell reflects ongoing structural reforms in Indonesia’s capital market. FTSE Russell acknowledged progress in implementing eight Capital Market Integrity Reform Acceleration Action Plans, including enhanced shareholder ownership transparency, expansion of investor classification into 39 categories, a minimum free float requirement of 15%, and the introduction of the High Shareholding Concentration (HSC) mechanism as an early warning system for investors.

Indonesia’s status, on par with China and India in FTSE classification, underscores progress toward higher standards of governance and transparency in its capital markets. The Financial Services Authority (OJK) welcomed the assessment, saying the reforms “show positive and credible progress in the eyes of global index providers.”

The ministry said the dual recognitions validate the government’s consistent macroeconomic policy direction, including maintaining domestic demand, strengthening fiscal fundamentals, safeguarding monetary credibility, and advancing structural reforms in the financial sector.

“Amid a challenging external environment, Indonesia continues to demonstrate that strong domestic fundamentals serve as an effective anchor for sustaining long-term investor confidence,” the ministry said.

The government also reaffirmed its commitment to accelerating reforms ahead of the upcoming FTSE Russell quarterly review in June 2026 and the MSCI review in May 2026, to ensure growth remains inclusive, sustainable, and resilient to external shocks.

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