Chatib Basri Responds to Rumours of Appointment as Finance Minister

Jakarta, VIVA – Senior economist and former Finance Minister, Chatib Basundari, has responded to reports suggesting he is set to be inaugurated as Finance Minister, replacing Purbaya Yudhi Sadewa. Speaking after the Grab Business Forum in the Sudirman area, Jakarta, Basri stated briefly that he was unaware of such developments. “I do not know,” Basri remarked while heading to his vehicle on Tuesday, 9 June 2026.

Earlier, while serving as a speaker at the Grab Business Forum, Basri noted that although managing national finances is fundamental to performance, the technical duties of a Finance Minister are relatively straightforward. He explained that within the complexity of the national balance sheet, a Finance Minister essentially has three primary strategic instruments at their disposal: increase, cut, or borrow.

“The task of the Finance Minister is actually very simple. They only have three options: increase, cut, or borrow,” he said. “It is as simple as that, because the balance sheet cannot be altered otherwise.”

However, Basri emphasised that implementing these three instruments is far from simple, particularly under current economic conditions. He argued that boosting state revenue by raising taxes is not a wise option, as it could weaken public purchasing power. Conversely, he admitted that increasing debt is highly risky, especially given the high global interest rates that are currently driving up the cost of funds.

Faced with this impasse, Basri expressed hope that the government could progressively rationalise the budget. This could include measures such as cutting subsidies that are poorly targeted or those that do not yield significant positive impacts on the national economy. He suggested this 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.