Finance Minister: Indonesia’s Fiscal Fundamentals Remain Healthy

Finance Minister Purbaya Yudhi Sadewa stressed that the depreciation of the rupiah against the US dollar currently is not caused by a deteriorating state of the government’s fiscal position. In the face of global uncertainty and international financial market pressures, the government claims Indonesia’s fiscal fundamentals remain healthy.

In a press conference for the APBN Kita edition April 2026 in Jakarta, on Tuesday 19 May, Purbaya explained that the fiscal health is reflected in the debt-to-GDP ratio which remains stable around 40%. In addition, the budget deficit is kept tightly below the 3% of GDP threshold.

‘There are those who say, who is it? That because the fiscal is in a mess the rupiah weakens. The fiscal is very good indeed,’ he said, dismissing negative speculation about the domestic economy.

The State Treasurer said that compared with several other countries, Indonesia’s fiscal position remains relatively sound. The debt-to-GDP ratio at 40% is seen as far safer than many countries that are currently facing heavier economic pressures.

‘Moreover, if we use the debt-to-GDP measure, we are still at 40%. The others are already in a mess,’ he said. He added that national economic improvements continue in tandem with the fiscal position being safeguarded, which he described as the result of stronger private sector contributions.

The government continues to ensure the private sector remains the engine of growth. In addition, inflation is believed to be kept under control, partly due to government policy that maintains fuel subsidies until the end of the year.

Purbaya explained that the weakening of the Rupiah has been accounted for in the energy subsidy scheme. The government has taken a realistic exchange-rate assumption in the latest calculations. ‘So there’s no need to worry, we have already accounted for it,’ he stressed.

Although domestic fundamentals are strong, the Finance Minister concedes that the world still faces high uncertainty due to geopolitical tensions in the Middle East. This has driven high prices of global commodities such as oil, crude palm oil (CPO), gold, and copper.

According to Purbaya, the resolution of economic and geopolitical conflicts globally will not be quick. However, national economic resilience is considered robust thanks to the increasingly close coordination of fiscal and monetary policy.

‘This was designed by the President. In other words, the President’s design is correct, and going forward we will continue to improve,’ Purbaya said, referring to various government programs designed to support business activity.

In concluding his remarks, Purbaya stated that Indonesia’s economic performance in April 2026 shows an improving trend. He hoped the facts about the solidity of the economic fundamentals would be widely conveyed to the public so that unfounded fears do not spread.