{
    "success": true,
    "data": {
        "id": 1660044,
        "msgid": "purbaya-shares-how-indonesia-ignored-imf-advice-during-economic-pressures-1775616748",
        "date": "2026-04-07 08:25:45",
        "title": "Purbaya Shares How Indonesia Ignored IMF Advice During Economic Pressures",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Finance Minister Purbaya Yudhi Sadewa has recounted Indonesia's history of defying IMF recommendations to tighten budgets during economic crises, from 1998 to the 2020 Covid pandemic and into 2025, instead opting to increase incentives and spending to sustain growth. In 2025, the government allocated substantial fiscal incentives, including Rp96.4 trillion for MSMEs, Rp77.3 trillion in VAT exemptions for staple foods, and further support for transport, education, health, and investments totalling over Rp260 trillion. This counter-cyclical approach preserved consumer purchasing power and supported economic recovery, demonstrating Indonesia's effective crisis management strategy.",
        "content": "<p>Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has\nrevealed that Indonesia has a long history of navigating crises. During\nthis journey, the government once rejected advice from the International\nMonetary Fund (IMF) to tighten budgets when the economy was under\npressure.<\/p>\n<p>This decision to ignore the IMF\u2019s advice did not worsen the economy.\nInstead, Indonesia\u2019s economy rebounded and grew. This occurred across\nseveral periods, from 2008 and 2015 to the Covid pandemic in 2020. In\n2025, Purbaya stated that the government adopted the same approach.<\/p>\n<p>\u201cLast year in 2025, we shifted towards a positive direction. This is\nnot my invention, but based on Indonesia\u2019s experience over the past 25\nyears, plus the 1998 crisis,\u201d Purbaya said during a meeting with\nCommission XI of the House of Representatives (DPR RI) at the\nParliamentary Complex in Senayan, Jakarta, quoted on Tuesday\n(7\/4\/2026).<\/p>\n<p>The government did not follow the IMF\u2019s suggestion to achieve\nefficiency through spending cuts. Instead, Indonesia did the opposite.\nThe government did not cut spending; it instead channelled incentives in\n2025.<\/p>\n<p>\u201cSo in such conditions, when the economy is disrupted, we do not\napply the IMF approach, which is to tighten the belt, cut all spending,\nand so on,\u201d Purbaya explained.<\/p>\n<p>According to Ministry of Finance records, the largest tax incentives\nwere allocated to micro, small, and medium enterprises (MSMEs) at Rp96.4\ntrillion in 2025.<\/p>\n<p>In addition, the government exempted VAT on food items with an\nincentive value of Rp77.3 trillion. This facility covers VAT borne by\nthe government for essential goods such as rice, corn, soybeans, sugar,\nas well as fishery and marine products.<\/p>\n<p>Furthermore, the government exempted VAT on public transportation\nservices and provided special VAT rates for freight forwarding services.\nThe value of this incentive reaches Rp39.7 trillion.<\/p>\n<p>The government provided incentives for the education sector amounting\nto Rp25.3 trillion. This facility includes VAT exemptions on education\nservices and textbooks, as well as other incentives related to\neducational activities.<\/p>\n<p>In the health sector, the government also provided incentives of\nRp15.1 trillion. These facilities include no VAT on medical health\nservices and various other supporting incentives.<\/p>\n<p>There are also tax holidays and tax allowances to encourage\ninvestment, with a total value of Rp7.1 trillion. \u201cSo this clearly shows\nthat the government always supports economic growth as optimally as\npossible,\u201d Purbaya emphasised.<\/p>\n<p>With this approach, he stated that public purchasing power was\nmaintained and consumption continued to grow.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/purbaya-shares-how-indonesia-ignored-imf-advice-during-economic-pressures-1775616748",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}