Vice Finance Minister: Global Uncertainty Becomes the New Normal for ASEAN

RRI.CO.ID, Jakarta - The Indonesia’s Vice Minister of Finance, Suahasil Nazara, said global uncertainty has now become the “new normal” challenge that countries in Southeast Asia must face. Speaking at the ASEAN Regional Economic Outlook and Fiscal Policy Seminar in Jakarta on Monday, the Minister stated that stability in the ASEAN region must be actively built by all member states.

“Uncertainty will become our new normal in the future. Therefore, stability or certainty is not simply given to us. It is something that we must build ourselves,” Suahasil said in a statement received in Jakarta on Monday, May 25, 2026.

He highlighted various global challenges ranging from trade wars, trade fragmentation, climate change, to technological disruptions such as artificial intelligence (AI).

According to him, ASEAN needs to strengthen its regional economic strategy by increasing intra-ASEAN trade, reducing non-tariff barriers, and enhancing cooperation in the digital economy and green transition sectors. In addition, Suahasil emphasized the importance of prudent macroeconomic policies, strengthening food and energy security, and optimizing regional financial cooperation such as the Chiang Mai Initiative Multilateralization (CMIM) and local currency settlement.

He also expressed hope that ASEAN would not become trapped within a single geopolitical bloc, but instead continue to engage with major global economic powers such as the United States, China, India, the European Union, and Japan. On the occasion, Suahasil reaffirmed the Ministry of Finance’s commitment to strengthening regional synergy through research collaboration with the National Economic Council (DEN) and the ASEAN+3 Macroeconomic Research Office (AMRO).

He said the research collaboration is important as an instrument for formulating appropriate fiscal policies amid global economic dynamics. At the same event, Suahasil also outlined Indonesia’s economic performance, which he described as remaining solid in the first quarter of 2026.

He noted that Indonesia’s economic growth reached 5.61 percent, with inflation kept under control at 2.4 percent, while the budget deficit remained maintained at 2.9 percent. “The combination of 5.6 percent economic growth and 2.4 percent inflation, I dare say, would be a source of envy for many other countries,” Suahasil said.

He added that the 8 percent economic growth target set by the administration of President Prabowo Subianto is an important agenda that must be achieved through increased productivity, infrastructure development, and strengthening human resource capacity to create quality jobs.