Finance Minister Purbaya Clarifies Indonesia's Fiscal Health to China After Misinformation

Indonesian Finance Minister Purbaya Yudhi Sadewa revealed that he had received a question from Chinese Finance Minister Lan Fo’an regarding the actual state of Indonesia’s fiscal condition. During a meeting held on Wednesday (18/6/2026) in Beijing, the question arose because the Chinese Ministry of Finance had previously heard incorrect information about Indonesia’s fiscal situation.

“From the Chinese Ministry of Finance, they were initially worried or had heard incorrect information about Indonesia’s fiscal condition,” Purbaya said in a video statement, quoted on Thursday (18/6/2026).

In response to the query, Purbaya immediately clarified that Indonesia’s fiscal condition is very sound. He stressed that the Indonesian government has successfully kept the deficit below the safe limit of 3% of GDP as mandated by the State Finance Law. As of May 2026, Indonesia’s budget deficit stood at 0.70% of gross domestic product (GDP), equivalent to Rp 180.4 trillion.

“I explained earlier that Indonesia’s fiscal condition is very good, the deficit is under control, growth is also strong, and tax revenue is increasing, so they are convinced that Indonesia’s economic condition is indeed good,” he elaborated. “We had an in-depth discussion so that we could convince the Chinese Ministry of Finance that this is truly the situation,” Purbaya emphasised.

Beyond fiscal stability, Purbaya noted that the Chinese finance minister also sought to align perspectives on resolving global issues. “We aligned our views between Indonesia and China on how we handle international problems. We tend to choose multilateralism and will support a multilateralism approach in various global forums. So Indonesia and China will cooperate on that,” Purbaya disclosed.