Deputy Finance Minister: Three Crisis Triggers Not Yet Visible in Indonesia

JAKARTA, KOMPAS.com - The Ministry of Finance has stated there are no signs pointing to an economic crisis in Indonesia. The statement comes amid growing speculation about potential economic weakening in public and social media circles. Deputy Finance Minister Juda Agung said history shows three main sources that often trigger economic crises in various countries. These three sources are fiscal crisis, balance of payments crisis, and financial system crisis. According to Juda, none of these indicators are evident in Indonesia’s current economic conditions. “Looking at the figures, we are far from a crisis situation,” Juda said at the National Conference on Regional Economic Development on Monday (25 May 2026). In past crises, governments experienced sharp budget deficits. Investor confidence weakened, making it difficult for governments to secure financing. “Issuing bonds with no buyers led to fiscal crises in Latin America,” he said. However, Juda assured that Indonesia’s fiscal condition remains stable. The government continues to keep the national budget deficit below 3% of gross domestic product (GDP). Government debt financing continues to enjoy strong confidence from both domestic and foreign investors. Juda cited the relatively stable yield on government securities (SBN) at 6.5% to 6.7% as evidence of this confidence. “If investors lack faith in our fiscal policies, yields would surge,” he added. In previous periods, many private companies took out large foreign loans. This made companies vulnerable when the exchange rate weakened and foreign capital flows suddenly stopped, leading to widespread defaults on foreign debt. The economic system then faced severe pressure. “Currently, our balance of payments figures are relatively healthy and balanced. There are no signs of a balance of payments crisis,” he said.