Finance Minister Purbaya Baffled by Recession Claims as Malls Bustle and Roads Jam

Finance Minister Purbaya Yudhi Sadewa admitted he is puzzled by the many parties claiming the Indonesian economy is heading for a crisis. He argued this is unfounded because he observes directly that the pulse of public economic activity remains vibrant. Quoting the Mandiri Spending Index, Purbaya revealed that public spending levels remain strong. The MSI reached 123.2 in May, a level higher than the April 2026 position. “So public spending is still strong,” he said during the APBN KiTa press conference on Friday. Purbaya then disclosed a number of pieces of evidence. He said car sales grew 55 percent and motorcycle sales grew 28.1 percent in April 2026. Furthermore, domestic cement sales grew 35 percent in April 2026. “This shows strong domestic demand… This is different from the stories out there. This is the accurate data,” said Purbaya. Purbaya also recounted going directly to markets and malls to verify conditions himself. He observed that cities such as Jakarta, Bandung, and Bogor remain congested, and shopping malls are full. Purbaya admitted he once visited a mall in Bandung. He found that mall was quiet. However, upon investigation, the lack of visitors was apparently due to the schedule of a Persib match in Bandung. Purbaya acknowledged staying at the mall until 10 p.m. He was surprised because the mall became busy again, and he said it was difficult to leave. “Going to the mall, getting out was congested, I couldn’t go home until 3 a.m.,” he said. He admitted to being confused as to why Indonesia is said to be heading for a recession when liquidity remains adequate and money and credit are sufficient. “It is rather confusing why we are heading for a recession when money is sufficient, credit growth is sufficient. I asked BRI what their credit growth was, 13.8 percent in May 2026. Profits also rose. What does this mean? It describes the real situation,” he explained.