President Prabowo Subianto summoned a number of economic ministers and former senior economic officials to the State Palace in Jakarta on Friday, in a meeting focused on reviewing Indonesia’s past crisis experiences and strengthening policy responses to current global economic uncertainty.
Those present included Coordinating Minister for Economic Affairs Airlangga Hartarto and Finance Minister Purbaya Yudhi Sadewa. The meeting also brought together several former policymakers, including former Bank Indonesia Governor Burhanuddin Abdullah (2003–2008), former head of the National Development Planning Agency (Bappenas) Paskah Suzetta (2005–2009), and former Bappenas deputy minister Lukita Dinarsyah.
Airlangga said the discussion centered on lessons learned from previous economic crises, particularly those experienced in the mid-2000s and the global financial crisis of 2008.
“We accompanied the President in receiving several figures who had previously served as ministers or Bank Indonesia governors,” Airlangga said after the meeting on Friday.
He added that the participants shared reflections from their time in government, particularly between 2004 and 2014, when Indonesia faced multiple external shocks.
According to Airlangga, the discussion revisited episodes of economic stress in which inflation had reached around 17 percent, alongside periods of sharp rupiah depreciation against the US dollar driven by global commodity price fluctuations.
He also pointed to the 2005 global oil price surge, when crude oil reached around US$140 per barrel. At that time, adjustments to subsidised fuel prices contributed to a spike in inflation, which at one point reached 27 percent.
Airlangga contrasted those conditions with the current economic environment, stating that Indonesia’s macroeconomic fundamentals are now significantly stronger.
“Compared to previous crises, today’s macroeconomic conditions are much more stable, with rupiah depreciation at around 5 percent,” he said.
He described the current situation as considerably more resilient than past crisis periods, particularly in terms of external pressure and domestic financial stability.
Airlangga said the government would use insights from the discussion to refine its approach to economic management and crisis preparedness.
“The President asked us, together with the Finance Minister, to monitor regulatory frameworks that strengthen financial stability and maintain prudential standards in the banking sector,” he said.
He also noted that Indonesia’s banking sector consists of a large number of institutions, which requires careful policy consideration to ensure capital strength and systemic stability.
According to him, one of the key issues discussed was the need to reinforce banking resilience amid evolving global financial conditions.
The meeting reflects the government’s broader effort to draw on historical experience in shaping policy responses to current risks, particularly as global uncertainty continues to influence emerging markets.
Officials indicated that lessons from past crises remain relevant in assessing potential vulnerabilities and ensuring that Indonesia’s financial system remains stable under external pressure.
The discussion also underscored the importance of coordination between fiscal and monetary authorities in maintaining economic stability.
Further policy adjustments are expected to be guided by ongoing monitoring of global financial developments and domestic economic indicators, particularly in the banking and investment sectors.
