RRI.CO.ID, Jakarta – Indonesia’s economy is gaining momentum in mid‑2026, supported by easing inflation, a recovering manufacturing sector, and an improving trade balance. The government sees these factors as crucial for sustaining growth.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government will continue balancing inflation control with economic expansion. Food and energy security, alongside price stability, are viewed as key to maintaining purchasing power, boosting business confidence, and strengthening competitiveness.

“The government is optimistic that Indonesia’s economy will grow sustainably, supported by controlled inflation, manufacturing expansion, and a stronger trade balance,” Minister Airlangga stated in a press release on Monday, August 3, 2026.

His remarks followed the release of three positive indicators: July inflation eased to 2.88 percent year‑on‑year, the Manufacturing PMI returned to expansion at 50.2, and the June trade deficit narrowed significantly.

Efforts to stabilize inflation include cooperation with Bank Indonesia and local governments, backed by programs such as the Affordable Food Movement, expanded rice reserves, and inter‑regional supply coordination.

In agriculture, productivity is being boosted through irrigation rehabilitation, fertilizer and seed distribution, mechanization, and logistics improvements. Financing support is provided via People’s Business Credit (KUR) and Agricultural Business Credit (KUP) schemes.

Energy security measures include raising oil and gas output, accelerating renewable energy development, implementing the B50 biodiesel mandate, and promoting downstream resource processing. Incentives such as import duty exemptions are also in place to curb imported inflation and maintain industrial competitiveness.

Externally, Indonesia posted a cumulative trade surplus of USD 3.58 billion from January-June 2026, reinforcing optimism that the national economy remains resilient amid global challenges. ***