JAKARTA – Finance Minister Purbaya Yudhi Sadive stated that the projection of global economic growth from 2025 to 2026 shows signs of improvement, although it is still overshadowed by geopolitical tensions such as trade conflicts between the United States and China, as well as potential shutdowns in the US.

“We see that the projected global economic growth from 2025 to 2026 is starting to improve. Although the geopolitical tension of the US-Chingkok trade and the US shutdown occurs, it seems like the global economy tends to improve,” he said at a press conference on our State Budget, Tuesday, October 14.

He added that global manufacturing sector activities continue to show visible growth from the global Purchasing Managers’ Index (PMI) which remained in the expansion zone in September 2025, namely the global manufacturing PMI was recorded at 50.8.

“The global PMI remains expansive, reflecting the sustainability of manufacturing activity including in the Asian region. India, Saudi Arabia, Thailand is a solid expansion. Meanwhile, several developed countries are starting to slow down,” added Purbaya.

Furthermore, he revealed that the global financial market conditions are also starting to recover gradually, where the Central Bank of the United States is expected to lower interest rates, which are considered to be a positive driver for capital flows entering developing countries, including Indonesia.

However, Purbaya reminded that Indonesia still needs to be careful of global dynamics that are still very sensitive, and one of the factors that need to be watched out for is the US fiscal policy that has the potential to affect the volatility of gold prices.

“The global financial market condition shows that the relatively stable recovery is supported by the easing of the tension of the trade war and the expectations of cutting the Fed Funds Rate,” he said.

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