Indonesia faces rising economic pressure as liquidity tightens
Finance Minister Suahasil Nazara linked the pressure to geopolitical conflict, higher global energy prices and tighter monetary policy abroad.
Indonesia’s domestic economy came under greater pressure entering October despite remaining resilient in the third quarter of 2026, Finance Minister Suahasil Nazara said at a Jakarta press conference on 3 November 2026.
Speaking after a regular meeting of the Financial System Stability Committee, Suahasil said solid economic growth and sustained financial intermediation had underpinned that resilience. He nevertheless acknowledged that conditions had become more strained as October began.
Suahasil attributed the mounting domestic pressure to escalating geopolitical conflict, which he said had pushed up energy prices globally. He also pointed to increasingly tight monetary policy among central banks in various countries.
That monetary tightening was squeezing liquidity in international financial markets as well as in Indonesia, he said. Exchange-rate pressure was also increasing outflows from the stock market, according to the minister.
