Jakarta, InfoPublik - Indonesia is once again in the positive spotlight in the Asian region thanks to its stable macroeconomic performance and mature fiscal policies. The latest data from the Central Statistics Agency (BPS) shows that the main consumer price inflation rate is 2.86 per cent year-on-year (YoY) and 2.10 per cent year-to-date (YtD).
These figures demonstrate Indonesia's ability to maintain price stability amid ongoing high global uncertainty.
According to Shan Saeed, Chief Economist at Juwai IQI Global, this achievement is evidence of the discipline of national economic policy. ‘This moderation, which is within the range of 2 per cent to 3 per cent, reflects the accuracy of Bank Indonesia's monetary policy and the effectiveness of measured fiscal management,’ he said in an official statement on Tuesday (4/11/2025).
In addition to controlled inflation, the rupiah exchange rate has also been relatively stable throughout 2025. This condition strengthens public confidence in Indonesia's monetary orthodoxy and affirms the external resilience of the national economy. Appreciation should also be given to Bank Indonesia for its success in maintaining a balance between price stability and growth momentum.
Indonesia's economic growth, which is projected to be in the range of 5.0 per cent to 5.8 per cent, is a strong signal that the country is still among the most resilient developing economies in Asia. Shan Saeed refers to the combination of low inflation and solid growth as the ‘holy grail’ of modern macroeconomic management.
‘The coexistence of low inflation and strong growth is the holy grail of macroeconomic management, protecting people's purchasing power while encouraging the formation of productive capital,’ he said.
The consistency of policies between the government and monetary authorities has resulted in synergies that strengthen the national economic foundation. This synchronisation continues to yield tangible results in the form of increased investor confidence, sustained growth, and maintained social stability.
Capital Market Confirms Investor Confidence
The performance of the Indonesian capital market also shows a positive trend. The Composite Stock Price Index (IHSG) rose by around 7.5 per cent annually and 2.9 per cent in the last month to reach around 8,272 points. Despite the rally, market valuations are still within reasonable limits with a P/E ratio of around 13.1, which is in line with the historical average of 11.7 to 14.7.
This positive sentiment reflects investor confidence in Indonesia's macroeconomic stability. ‘The stock market narrative remains constructive, in line with the momentum of national economic growth,’ said Saeed.
According to him, Indonesia's macroeconomic credibility is an important foundation that supports capital market optimism and domestic corporate performance.
FDI Flows as Evidence of Global Confidence
In addition to the stock market, foreign direct investment (FDI) flows also reflect the strong appeal of Indonesia's economy. In 2024, FDI recorded a net inflow of around USD 24.1 billion. This figure makes FDI one of the important pillars in capital formation and national economic structural transformation.
The sectors receiving foreign investment also show healthy diversification. The metal and machinery industry absorbed around 23.4 per cent, followed by the telecommunications and transportation sector at 11.2 per cent, chemicals and pharmaceuticals at 9.6 per cent, and mining at 9.4 per cent. This structure shows how Indonesia occupies a strategic position in the global value chain.
Saeed assessed that this momentum strengthens Indonesia's reputation as a magnet for quality capital. ‘This momentum strengthens Indonesia's reputation as a magnet for quality capital, supported by reformist policy architecture and institutional depth,’ he said.
Policy Credibility and Investor Competitiveness
The success in keeping inflation low, solid economic growth, stable stock market rally, and increasing FDI inflows demonstrate Indonesia's macroeconomic sovereignty. Controlled inflation expectations provide room for monetary policy to expand in a targeted manner without posing risks to financial market stability.
Global investors continue to show interest in Indonesia, driven by policy clarity, potential demographic dividends, and a strong commitment to energy transition. The government has demonstrated a long-term commitment to maintaining macroeconomic stability, which is a key factor in strengthening Indonesia's credibility as a reliable investment destination.
Looking at current economic trends, Indonesia is showing a confident yet realistic posture. A combination of institutional reforms, increased investment, and prudent governance has made the national economy more resilient to global shocks.
With inflation expected to decline towards the 2 per cent threshold and GDP growth around 5.8 per cent, Indonesia now stands as a model of macroeconomic resilience in the ASEAN region. In Shan Saeed's view, ‘Indonesia is a stable hand amid global turbulence, as well as a symbol of disciplined prosperity.’
Previously, Haryo Limanseto, Expert Staff for Regional Development and Spokesperson for the Coordinating Ministry for Economic Affairs, explained that Indonesia's economic performance continues to show resilience and positive trends amid global dynamics that are still full of uncertainty. In the second quarter of 2025, the national economy grew solidly by 5.12 per cent (YoY), supported by controlled inflation and the effectiveness of fiscal, monetary and real sector policy synergies. Inflation was within the target range of 2.5 per cent ±1 per cent, with inflation recorded at 2.65 per cent (YoY) in September 2025, reflecting maintained price stability.
Various recent economic indicators also reinforce optimism about the national economic outlook. The Consumer Confidence Index (IKK) stood at 115, indicating that the public remains optimistic.
Domestic economic activity has also increased, as reflected in the Real Sales Index (IPR), which grew by 5.8 per cent (YoY), and direct investment, which reached Rp1,434 trillion from January to September 2025, up 13.7 per cent (YoY) and absorbing 1.96 million workers.
Externally, the trade balance remained in surplus at USD29.14 billion, while banking resilience and high foreign exchange reserves maintained the stability of the national financial system.
Thus, the views of economic analysts on Indonesia's economic achievements paint a clear picture: Indonesia's economy is moving forward with a strong foundation, solid market confidence, and policies that favour a balance between stability and sustainable growth.