Govt Expects Economy to Stay Stable Amid Disasters

RRI.CO.ID, Jakarta – The Indonesian government is optimistic that economic activity will remain stable amid the disasters occurring in several regions. The impact on economic growth in Q3 and Q4 2026 is expected to be limited.

Minister of Finance Purbaya Yudhi Sadewa said that the government is still managing the economy as planned. “From an economic perspective, there should be some disruption, but it won’t slow down the economy significantly,” Minister Purbaya said in a statement in Jakarta on Monday, September 7, 2026, as quoted by Antara.

Minister Purbaya even noted that the government will boost economic activity during those two quarters. Regarding disaster response, the government is relying on the National Disaster Mitigation Agency (BNPB) budget to meet initial needs.

“If additional funds are needed later, we’ll provide them then. We expect the impact not to be that devastating, hopefully,” he said.

Meanwhile, President Prabowo Subianto urged residents in Jakarta, Banten, Lampung, and areas surrounding the Sunda Strait to remain cautious of the eruption activity of the Anak Krakatau Volcano. Residents were asked to stay calm, follow officials’ instructions, and avoid entering areas designated as danger zones.

The President said that the government continues to monitor developments in Anak Krakatau Volcano’s activity through reports from relevant agencies. He also urged the National Disaster Management Agency (BNPB), the Meteorology, Climatology, and Geophysics Agency (BMKG), the Indonesian Military (TNI), the National Police (Polri), local administrations, the Ministry of Health, the Ministry of Transportation, and other relevant ministries and agencies to maintain emergency preparedness.

For residents exposed to volcanic ash, the President urged them to use masks or other respiratory protection. Residents were also asked to limit outdoor activities when the ash is particularly heavy and to follow instructions from health officials and local administrations. ***