Amid a challenging external environment, Indonesia has proven that strong domestic fundamentals are an effective anchor in maintaining long-term investor confidence,Jakarta (ANTARA) – Coordinating Minister for Economic Affairs Airlangga Hartarto, citing international publications, stated that global investors continue to recognize the fundamental resilience of Indonesia’s economy amid rising tensions in the Middle East.”Two international publications released in less than a week confirm the views of global market players and multilateral institutions regarding Indonesia's economic resilience,” Airlangga said in his statement on Tuesday.He referred to the Asian Development Bank (ADB) April report, which predicts Indonesia's economy will grow steadily at 5.2 percent in 2026 and 2027, up from 5.1 percent in 2025.On April 7, global index agency FTSE Russell maintained Indonesia's capital market status as a secondary emerging market and did not include Indonesia on its watch list for potential downgrades.According to Airlangga, these signals emerged amid increasing global uncertainty due to conflict in the Middle East, energy price volatility and international trade tensions that have put pressure on several countries in the region.The ADB projects Indonesia's growth to be above the Southeast Asian subregion average of 4.7 percent in 2026, reflecting the structural strength of the domestic economy compared to other countries in the region.The institution assesses that strong domestic demand, maintained inflation at around 2.5 percent in line with the government's targets, and calibrated monetary policy are the main pillars supporting Indonesia's economic performance.In terms of growth drivers, the ADB notes that household consumption remains a key factor, supported by increased productivity in the agricultural sector and the seasonal momentum of Ramadan and Eid al-Fitr.Continued infrastructure development and rising private sector investment, particularly in downstream industries, have also strengthened growth. Steady foreign investment inflows are also helping support external financing while maintaining exchange rate stability.Targeted fiscal policy continues to play a role in maintaining purchasing power and supporting investment, according to the ADB report.Meanwhile, FTSE Russell’s assessment is seen as reflecting progress in structural reforms in Indonesia’s capital market. The institution highlighted the implementation of eight action plans to accelerate reforms, including increased share ownership transparency, expanded investor classifications, a minimum free float requirement of 15 percent, and an early warning mechanism for high shareholding concentration (HSC).Indonesia’s position, Airlangga noted, is now on par with China and India in the FTSE classification, further confirming the capital market’s progress toward global governance and transparency standards.The Financial Services Authority (OJK) welcomed the assessment as evidence that ongoing reforms “show positive and credible progress in the eyes of global index providers.”The government views these recognitions as validation of its macroeconomic policy direction, which includes maintaining domestic demand, strengthening fiscal foundations, preserving monetary credibility, and continuing financial market reforms.“Amid a challenging external environment, Indonesia has proven that strong domestic fundamentals are an effective anchor in maintaining long-term investor confidence,” Airlangga said.The government reaffirmed its commitment to accelerating reforms, including preparations for the FTSE Russell quarterly review in June 2026 and the MSCI index review in May 2026, to ensure inclusive, sustainable, and resilient growth amid external shocks.