Strengthening public governance and macroeconomic stability as determinants of the sustainability of Indonesia’s national business climate for the 2025–2026 period
Abstract
The sustainability of the national business climate is not solely influenced by the achievement of macroeconomic indicators, but is also determined by the quality of public governance, the effectiveness of fiscal policy, and institutional legitimacy. This study aims to analyze the interrelationship between anti-corruption policy reforms, regional fiscal dynamics, protection of informal labor, and financial system stability in sustaining national business activities during the 2025–2026 period. The research employs a normative qualitative approach with policy analysis based on secondary data obtained from Statistics Indonesia, Bank Indonesia, the Financial Services Authority, the Audit Board of Indonesia, and official government publications. The findings indicate that although national macroeconomic performance remains relatively stable, characterized by economic growth exceeding 5 percent and controlled inflation, structural challenges persist, including regional fiscal disparities, heightened private sector prudence, and the need to strengthen the legitimacy of public policies. This study emphasizes that the sustainability of national economic growth requires the integration of legal reforms, the strengthening of public institutions, and policy orientations that prioritize social productivity.
References
Adiatma, T., & Harinda, S. (2025). Pestle analysis for development of micro , small , and medium entreprises in Merauke City. IMKA Implementasi Manajemen & Kewirausahaan, 5(2), 168–182.
Akita, T., Riadi, A. A., & Rizal, A. (2021). Fiscal disparities in Indonesia in the decentralization era: Does general allocation fund equalize fiscal revenues? Regional Science Policy & Practice, 13(6), 1842–1866. https://doi.org/https://doi.org/10.1111/rsp3.12326
Amin, C., Mulyati, H., Anggraini, E., & Kusumastanto, T. (2021). Impact of maritime logistics on archipelagic economic development in eastern Indonesia. The Asian Journal of Shipping and Logistics, 37(2), 157–164. https://doi.org/https://doi.org/10.1016/j.ajsl.2021.01.004
Amirya, M. (2025). Challenges of Internal Auditing in the Indonesian Government. Jurnal Ilmiah Akuntansi, 9(2), 705–719. https://doi.org/10.23887/jia.v9i2.84737
Arefieva, O., Piletska, S., Khaustova, V., Poberezhna, Z., & Zyz, D. (2021). Monitoring the economic stability of the company’s business processes as a prerequisite for sustainable development: investment and security aspects. IOP Conference Series: Earth and Environmental Science, 628(1), 12042. https://doi.org/10.1088/1755-1315/628/1/012042
Badan Pusat Statistik. (2025). Unemployment rate was 4.85 percent. The average wage of employees was 3.33 million rupiah.
Bakker, L. (2023). Custom and violence in Indonesia’s protracted land conflict. Social Sciences & Humanities Open, 8(1), 100624. https://doi.org/https://doi.org/10.1016/j.ssaho.2023.100624
Bank Indonesia. (2025a). Indonesia’s External Debt Declined in the Third Quarter of 2025.
Bank Indonesia. (2025b). Indonesia Foreign Exchange Reserves : 9 May 2025. (May), 6639.
Bank, W. (2022). ecommendations to Improve the Implementation of Anemia Prevention and Control Interventions. https://doi.org/https://doi.org/10.1596/37436
Bazin, D., Bhukuth, A., Khribich, A., & Wulandari, A. (2023). Subcontracting to the informal economy in East Java, Indonesia. Third World Quarterly, 44(7), 1546–1564. https://doi.org/10.1080/01436597.2023.2190505
Brychko, M., Bilan, Y., Lyeonov, S., & Mentel, G. (2021). Trust crisis in the financial sector and macroeconomic stability: a structural equation modelling approach. Economic Research-Ekonomska Istraživanja, 34(1), 828–855. https://doi.org/10.1080/1331677X.2020.1804970
Chandrarin, G., Sohag, K., Cahyaningsih, D. S., Yuniawan, D., & Herdhayinta, H. (2022). The response of exchange rate to coal price, palm oil price, and inflation in Indonesia: Tail dependence analysis. Resources Policy, 77, 102750. https://doi.org/https://doi.org/10.1016/j.resourpol.2022.102750
Davoodi, H. (2021). Macroeconomic Stability and Inclusive Growth. IMF Working Papers, 2021(081), 1. https://doi.org/10.5089/9781513574363.001
Digdowiseiso, K. (2022). Are fiscal decentralization and institutional quality poverty abating? Empirical evidence from developing countries. Cogent Economics & Finance, 10(1), 2095769. https://doi.org/10.1080/23322039.2022.2095769
Ermini, Ramanata Disurya, Sardana, L., Husnulwati, S., & Suryati. (2026). Consumer Protection in Digital Transactions: An Analysis of Regulatory Effectiveness from Legal and Economic Perspectives . Indonesian Journal of Law and Justice, 3(3 SE-Articles), 11. https://doi.org/10.47134/ijlj.v3i3.5240
Fadila, A., & Pangestuti, D. C. (2025). Catalyzing Growth: The Interplay of Governance and Market Development in Achieving SDGs. Nominal: Barometer Riset Akuntansi Dan Manajemen, 14(1), 133–149. https://doi.org/10.21831/nominal.v14i1.78154
Garrouste, C., & Perdrix, E. (2022). Is there a consensus on the health consequences of retirement? A literature review. Journal of Economic Surveys, 36(4), 841–879. https://doi.org/10.1111/joes.12466
Guzman, L., & Hessel, P. (2022). The effects of public transport subsidies for lower-income users on public transport use: A quasi-experimental study. Transport Policy, 126. https://doi.org/10.1016/j.tranpol.2022.07.016
Hörcher, D., & Tirachini, A. (2021). A review of public transport economics. Economics of Transportation, 25, 100196. https://doi.org/https://doi.org/10.1016/j.ecotra.2021.100196
Hutahayan, B., Fadli, M., Amimakmur, S. A., & Dewantara, R. (2024). Investment decision, legal certainty and its determinant factors: evidence from the Indonesia Stock Exchange. Cogent Business & Management, 11(1), 2332950. https://doi.org/10.1080/23311975.2024.2332950
Indonesia, B.-S. (2025). Series of consumer Price Index November 2025. BPS-Statistics Indonesia.
Indonesia, B. of the R. of. (2024). BPK Provides Unqualified Opinion on LKPP for Fiscal Year 2024 and Oversees State Expenditures with Direct Impacts on the People. Retrieved January 30, 2026, from www.bpk.go.id/news/bpk-provides-unqualified-opinion-on-lkpp-for-fiscal-year-2024-and-oversees-state-expenditures-with-direct-impacts-on-the-people
Kiwi, D., Khanagha, S., & Alexiou, A. (2025). Understanding the Role of Legitimacy During Strategic Change in Public Organizations: A Review and Research Agenda. Public Performance & Management Review, 48(5), 1172–1210. https://doi.org/10.1080/15309576.2025.2476572
Kunder, S. S., Ronald, B., & Rajesh, S. (2022). Consumer protection under competition law highlighting relevant market issues under digital market. International Journal of Health Sciences, 6(July), 11752–11762. https://doi.org/10.53730/ijhs.v6ns5.11054
Kurniati, Y., & Abdillah, A. (2025). Comparative Labor Law Studies in Indonesia and Malaysia: Social–Economic Inequality and Governance of Migrant Workers. Laws, 14(6). https://doi.org/10.3390/laws14060079
Kurrohman, T., & Oktaviani, S. A. (2025). Strengthening Local Government’S Role in Implementing Sustainable Budgeting Through Environment-Based Budgeting in Indonesia. EKUITAS (Jurnal Ekonomi Dan Keuangan), 9(3), 460–476. https://doi.org/10.24034/j25485024.y2025.v9.i3.7196
Liu, Y., Wu, R., Huang, J., & Li, J. (2025). Research on the optimization of the intergovernmental sharing mechanism of public services under the new pattern of “dual circulation.” International Review of Economics & Finance, 103, 104554. https://doi.org/https://doi.org/10.1016/j.iref.2025.104554
Lowe, C., Rigolini, J., Solbes Castro, L., & Bastagli, F. (2023). Pathways toward digitalization in Social Protection and Labor (SPL) service delivery. Pathways toward Digitalization in Social Protection and Labor (SPL) Service Delivery. https://doi.org/10.1596/40473
Martumpal, M. (2025). Indonesia ’ s Goods Trade Balance Records Surplus for 66 Consecutive Months. (December).
Mazzocchi, R., & Tamborini, R. (2025). Price Stability, Macroeconomic Imbalances and the Role of Monetary Policy. https://doi.org/10.1007/978-3-031-71511-2_4
Mollah, A. H. (2023). Governance (S. N. Romaniuk & P. N. Marton, Eds.). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-319-74319-6_578
Morgan, T. C., Syropoulos, C., & Yotov, Y. V. (2023). Economic Sanctions: Evolution, Consequences, and Challenges. Journal of Economic Perspectives, 37(1), 3–30. https://doi.org/10.1257/jep.37.1.3
Nur, U., Mutiarin, D., Jovita, H. D., Palomares, P. P., & Isolana, J. B. (2025). The Role of Good Governance Indicators in Controlling Corruption. Journal of Governance and Public Policy, 12(1), 83–99. https://doi.org/10.18196/jgpp.v12i1.22287
Nurhadi, I. (2023a). Legislative Provisions Concerning Social Security for Online Ojek Drivers in Indonesia. AKADEMIK: Jurnal Mahasiswa Humanis, 3(2), 90–100. Retrieved from https://ojs.pseb.or.id/index.php/jmh/article/view/598%0Ahttps://ojs.pseb.or.id/index.php/jmh/article/download/598/486
Nurhadi, I. (2023b). Legislative Provisions Concerning Social Security for Online Ojek Drivers in Indonesia. AKADEMIK: Jurnal Mahasiswa Humanis, 3(2), 90–100. https://doi.org/https://doi.org/10.1016/j.intfin.2024.101959
Nurman, N., Zainal, Z., & Ardianyah, A. (2024). The Dynamics Of Theoretical Approaches In Contemporary Public Administration Studies: Critical Analysis And Policy Implications. Jurnal Kajian Pemerintah: Journal of Government, Social and Politics, 10(2), 123–136. https://doi.org/10.25299/jkp.2024.vol10(2).21508
Organisation for Economic Co-operation and Development. (2025). Compendium of Effective Approaches for Financial Consumer Protection. 1–108.
Pangestu, M., & Armstrong, S. (2025). Is This Time Different? Indonesia’s Response to Uncertainty. Bulletin of Indonesian Economic Studies, 61(3), 297–332. https://doi.org/10.1080/00074918.2025.2588819
Prasetya, F. (2023). Good Governance and Public Trust. Jurnal Penelitian Ekonomi Akuntansi (JENSI), 7(2 SE-Articles). https://doi.org/10.33059/jensi.v7i2.8831
Raczkowski, K., & Shachmurove, Y. (2024a). Macroeconomic Stability Modelling. Retrieved from www.wydawnictwo.uksw.edu.pl
Raczkowski, K., & Shachmurove, Y. (2024b). Macroeconomic Stability Modelling. In Politics & Society (Vol. 50). SAGE Publications Inc. https://doi.org/10.1177/00323292211006562
Rion, N. (2022). Dual labor markets and the macroeconomy.
Rohmah, F. N., & Karim, M. (2025). Reformulation of Consumer Protection Law Regulations as an Effort to Enforce Justice in e-Commerce Transactions in Indonesia. Et-Tijarie : Jurnal Hukum Dan Bisnis Syariah, 10(01), 10–18.
Roy, J., Wijaya, A., Darma, D. C., & A, E. K. (2022). Fiscal Decentralization and Income Inequality: A Prediction Using the SEM Model. Journal of Economics, Business, and Accountancy Ventura, 24(3 SE-Articles), 379–391. https://doi.org/10.14414/jebav.v24i3.2681
Roysul, H., & Muninghar. (2021). Pengaruh Keputusan Investasi, Keputusan Pendanaan dan Kebijakan Dividen Terhadap Nilai Perusahaan. IMKA Implementasi Manajemen & Kewirausahaan, 1(2), 141–152. https://doi.org/https://doi.org/10.38156/imka.v1i2.79
Saman, Z. I., Blongkod, H., & Husain, S. P. (2017). The Effect of Transparency and Accountability on Village Financial Management. Scientific Journal of Economics,[Online] Vol, 1(January), 1759–1766.
Saurav, A., & Viney, B. (2021). Catalyzing Investment for Green Growth. Retrieved from https://www.imf.org/en/Publications/WEO/Issues/2021/10/12/world-economic-outlook-october-2021
Sayekti, N. W., & Sari, A. J. (2024). Challenges and Opportunities for Indonesia’S 2025 Economy Amid Declining Household Consumption. Info Singkat, XVI.
Suhendarto, B. P., & Handoyo, B. (2025). Meaningful Participation and Regulatory Impact Analysis in Legislation From the Perspective of Habermas’ Deliberative Democracy. Refleksi Hukum: Jurnal Ilmu Hukum, 9(2), 175–194. https://doi.org/10.24246/jrh.2025.v9.i2.p175-194
Sulastri, L., Efendi, B., & Gumilar, G. (2023). The Politics of Asset Confiscation Law in Indonesia. Lex Publica, 10(1), 43–65. https://doi.org/10.58829/lp.10.1.2023.43-65
Transparency International Indonesia. (2023). Corruption Risk Assessment Of Infrastructure Projects In Indonesia. In Transparency International.
Triyono, Pradipta, L., Barid, V. B., Kurniawan, F. E., & Muslim, F. (2026). Informal Sector Workers’ Income and Access to Social Security in Indonesia BT - Managing Disruption and Developing Resilience for a Better Southeast Asia (Nawawi, A. N. Alami, J. Bautista, M. Aung-Thwin, D. Simandjuntak, & Y. E. Prasetyo, Eds.). Singapore: Springer Nature Singapore.
Turay, A. B. S., Maksum, A., & Kuyateh, D. A. (2025). How Policy Shapes Investment Opportunities? Comparative Insights From Asia and Africa. EKUITAS (Jurnal Ekonomi Dan Keuangan), 9(3), 406–421. https://doi.org/10.24034/j25485024.y2025.v9.i3.7249
Uddin, I., Ahmad, M., Ismailov, D., Balbaa, M. E., Akhmedov, A., Khasanov, S., & Haq, M. U. (2023). Enhancing institutional quality to boost economic development in developing nations: New insights from CS-ARDL approach. Research in Globalization, 7, 100137. https://doi.org/https://doi.org/10.1016/j.resglo.2023.100137
Warburton, E. (2024). Nationalist enclaves: Industrialising the critical mineral boom in Indonesia. The Extractive Industries and Society, 20, 101564. https://doi.org/https://doi.org/10.1016/j.exis.2024.101564
Wirawan, B. A., Tobing, D. M. L., Cipriano, A., Rivas, V., Chung, A., Izaguerri, A., & Teresa Moreira. (2022). National Framework For Consumer Complaints Handling and Dispute Resolution In Indonesia. 1. Retrieved from https://unctad.org/
Wulandari, B. T., Arif Awaludin, & Indriasari, E. (2025). The Urgency of Harmonizing Consumer Protection Law in the Era of Digital Economy and Market Globalization. Journal of Law, Politic and Humanities, 6(1), 180–189. https://doi.org/10.38035/jlph.v6i1.2405
Yaqin, A. (2025). Public Policy Strategy To Stimulate National Economic Growth. International Conference on Humanity Education and Sosial, 2(1), 11.
Copyright (c) 2026 Ony Thoyib Hadi Wijaya, Nuryadi Nuryadi, Komarun Zaman, Kirana Salsabilla Citra Wijaya, Lely Maharani
This work is licensed under a Creative Commons Attribution 4.0 International License.
.jpeg)
