Airlangga Reports to Prabowo: Indonesia's Economy Grows 5.45%, Highest in the G20

JAKARTA, KOMPAS.com - Coordinating Minister for Economic Affairs Airlangga Hartarto reported to President Prabowo Subianto that Indonesia's economy has grown by 5.45 percent.

This growth, according to Airlangga, is supported by robust investment performance and a continuously strengthening productive sector.

Airlangga even claimed that this economic growth positions Indonesia as the highest among other G20 countries.

“The economy and stability of the real sector continue to grow above 5 percent, specifically at 5.45 percent, which is higher than the global average of 3 percent. Here we are the highest in the G20, Mr. President, and one of the highest in ASEAN,” Airlangga stated during a closed session of the Plenary Cabinet Meeting at the Palace in Jakarta on Wednesday (21/10/2026).

“From a manufacturing perspective, optimism remains high, with the PMI (Purchasing Managers’ Index) rising again to 52.4, above the neutral threshold of 50. Moreover, our trade surplus is also positive at 7.25, with consumer sentiment at 118.1. Unemployment, since 1994, is at its lowest, Mr. President, at 4.65 percent, and the Gini ratio continues to improve at 0.368,” he added.

Furthermore, Airlangga mentioned that the government continues to maintain fiscal discipline and financial system stability to support sustained economic growth.

He reported that the state budget deficit is recorded at 1.24 percent, still in line with the planned direction.

On the monetary side, Airlangga praised Bank Indonesia's (BI) decision to maintain the benchmark interest rate at 5.75 percent.

Meanwhile, the yield on 10-year government bonds is recorded at 7.21 percent.

“The yield on 10-year securities is at 7.21 percent, foreign exchange reserves are still sufficient to cover 6.5 months of imports, totaling 146.3 billion, with bank credit growing at a double-digit rate, at 13.65 percent. Public funds stand at 10.94, while banking capital is also solid at 24.10, and the non-performing loan ratio is relatively small at 2.11 percent,” he elucidated.

Next, in the housing sector, the government plans to continue the VAT exemption facility for homes valued above Rp 2 billion and a maximum of Rp 5 billion.

Airlangga noted that the government is also preparing to relax contributions for the Job Loss and Death Benefits program, as well as enhance employment insurance benefits and support for subsidized mortgages.

In the jewelry industry, the government is discussing the adjustment of gold purity standards from 99.99 percent to 99.9 percent in accordance with industry standards presented in the report.

“Furthermore, the government will also continue the VAT exemption for homes priced above Rp 2 billion and up to a maximum of Rp 5 billion, relax contributions for job loss and death insurance, and enhance employment insurance benefits and subsidized mortgages. Additionally, for the jewelry sector, there will be a change in the current gold standard from 99.99 percent purity to what should ideally be 99.9 percent according to industry standards,” Airlangga added.