Indonesia Holds Strong While World Faces New Risks

Finance Minister Purbaya Yudhi Sadewa pointed out several big worries for the world economy. He said fights between countries, especially in the Middle East, could make things shaky. He also warned that countries pulling back from trade and putting up barriers are causing trouble. Another worry he mentioned is the chance of an El Niño event messing with weather and crops.

He explained that if the United States and Iran keep clashing, oil prices might jump higher. That could make it harder for factories to get the parts they need and slow down shipping routes. Because of these trade splits, central banks find it tough to decide on interest rates. They have to balance keeping prices steady with helping growth.

Global forecasters have cut their expectations for this year. The International Monetary Fund now sees the world economy growing about three percent. The World Bank puts the number at two and a half percent, while the Organisation for Economic Co-operation and Development guesses two point eight percent. All of these figures are lower than what they predicted a few months ago. Experts think the economy could pick up again in 2027, but the same risks could still linger.

Despite the gloomy outlook elsewhere, Indonesia's economy is holding up strong. In the first six months of 2026 it grew by five point four six percent. That rise came from people buying more inside the country, businesses investing more, and government steps that encouraged activity. Purbaya said the national budget and fiscal policy will stay key tools to keep the economy stable and support people's well-being.