Finance Minister Purbaya Denies Rift Rumours, Assures Strong Synergy Between MoF and BI

Finance Minister Purbaya Yudhi Sadewa has assured that the State Budget (APBN) remains strong enough to withstand the impact of energy price volatility on fuel and LPG subsidies, ensuring that subsidised fuel prices will not increase and purchasing power will not be disrupted, thereby having no negative impact on the Indonesian economy.

Regarding the weakening of the rupiah exchange rate, which briefly touched its lowest level of Rp 18,200 per US dollar, creating negative sentiment for the economy, Purbaya confirmed that economic fundamentals are still strong, supported by the Prabowo administration’s targeted and leak-free economic strategy. The Ministry of Finance, together with Bank Indonesia, is cooperating to maintain sentiment towards the rupiah exchange rate and ensure its impact on the economy remains limited.

Purbaya also confirmed the government’s commitment to overcoming various investment barriers through the establishment of a ‘Bottlenecking’ Task Force. This task force has successfully resolved several investment obstacles thanks to cooperation between the Ministry of Finance and relevant ministries and agencies, citing the example of a waste-to-energy power plant project in Sulawesi that was successfully unblocked.

Purbaya is also encouraging ministries and agencies to maximize spending as a pillar of the economy, warning that those who are slow or fail to meet targets will have their budgets reorganised in the following year. He also assured oversight of ministry and agency spending to ensure it impacts the economy and development. Regarding incentives for the second half of 2026, Purbaya is considering providing incentives for electric vehicles. Additionally, there will be subsidies for elderly citizens who have not yet received them, pending a decision from the President.