Chatib Basri Claims Finance Minister's Task is Very Simple, Here is Why

Jakarta, VIVA – Senior economist and former Finance Minister, Chatib Baslar, stated that although the performance of a Finance Minister is fundamental to managing state finances, the technical duties of the role are actually quite simple. He explained that within the complexity of the national balance sheet, there are three main strategic instruments available to a Finance Minister.

“The task of the Finance Minister is actually very easy. They only have three options: increase, cut, or borrow,” said Chatib at the Grab Business Forum in the Sudirman area, Jakarta, on Tuesday, 9 June 2026. “It is as simple as that, because the balance sheet cannot be altered otherwise.”

Nevertheless, Chatib emphasised that the implementation of these three instruments is not as straightforward as imagined, particularly under current economic conditions. He noted that boosting state revenue by increasing taxes is not a wise option, as it could weaken public purchasing power.

Furthermore, he admitted that the option to increase debt is also highly risky, especially amidst high global interest rates which are driving up the cost of funds, as is currently happening. Faced with this impasse, Chatib expressed hope that the government could progressively rationalise the budget. This includes, for example, cutting subsidies that are poorly targeted or those that do not yield a significant positive impact on the national economy. He believes such an approach is more realistic for improving fiscal health without further burdening the long-term debt structure. “So, in this situation, should taxes be raised, or should debt be increased? Because if we want to borrow or incur debt, the cost of funds is currently very expensive,” he concluded.