Indonesia's economy remains resilient as government spending set to boost growth-Xinhua

Indonesia's economy remains resilient as government spending set to boost growth

Source: Xinhua| 2026-10-20 16:49:50|Editor: huaxia

JAKARTA, Oct. 20 (Xinhua) -- Indonesia's economy has remained resilient amid global uncertainty, with steady growth, manageable inflation and higher government spending expected to support economic activity in the final quarter of 2026, Finance Minister Suahasil Nazara said Monday.

Indonesia's economy grew 5.45 percent in the first half of 2026, while annual inflation stood at 3.28 percent in September, Suahasil said, adding that the figures reflected the country's economic resilience despite external challenges.

"We will continue to maintain stability while promoting growth," Suahasil said after a meeting with President Prabowo Subianto at the State Palace.

He said the government would continue using fiscal policy to sustain economic activity and shield the public from external shocks.

Government spending is projected to reach around 1,300 trillion rupiah (about 72.4 billion U.S. dollars) in the fourth quarter, up from 1,200 trillion rupiah in the same period last year.

The increased spending is expected to stimulate domestic economic activity and strengthen social protection programs, including food assistance. ■

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