Global uncertainty has often been used by previous regulators as a justification for explaining the slowdown in Indonesia’s economic growth. In reality, the country’s economy is largely driven by domestic demand. This was stated by Finance Minister Purbaya Yudhi Sadewa during a seminar held at the Thamrin Nine Ballroom on Tuesday (January 27, 2026).

He criticized the long-standing narrative that links domestic economic conditions too closely to global developments. According to him, even when the global economy is portrayed as gloomy, nearly 90% of Indonesia’s economic growth is actually fueled by domestic demand.

Purbaya argued that blaming global factors is essentially an attempt to rationalize shortcomings in managing the domestic economy. He described such narratives as excuses made when economic governance at home fails to perform effectively.

As an example, he noted that the International Monetary Fund (IMF) initially projected global economic growth for 2025 at 3%, before revising it upward to 3.2%. Meanwhile, domestically, the public discourse was filled with alarming messages about economic threats, despite the fact that Indonesia managed to grow well above 5%, with exports serving as one of the main pillars. He emphasized that IMF projections are not always reliable.

According to Purbaya, it is crucial for the government and all stakeholders to foster optimism among the public so that domestic economic activities continue to run smoothly. As long as domestic demand can be maintained, he believes Indonesia’s economy will keep growing regardless of global conditions, while strong global demand would certainly provide additional benefits.