Finance Minister: World Bank to Global Institutions Appreciate Indonesia's Fiscal Strategy

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa stated that the World Bank to global rating institutions have appreciated the direction of Indonesia’s fiscal policy strategy under the leadership of President Prabowo Subianto. His statement resulted from a series of international agendas by the Finance Minister in Washington DC, United States, where he also held strategic meetings with World Bank executives as well as representatives from international rating institutions such as S&P Global Ratings. “The World Bank and rating institutions are very satisfied with our explanation of the strategy. So, doubts about whether we can implement good fiscal policies and create good growth at the same time seem to have disappeared,” said Purbaya, in a press statement received in Jakarta on Wednesday. The State Treasurer also mentioned that the World Bank expressed interest in deepening cooperation with Indonesia, particularly in supporting long-term development, poverty alleviation, and financing strategic projects in developing countries. In addition, amid his agenda, Purbaya met with 18 major investors, including Goldman Sachs and Fidelity Investments. According to Purbaya, the investors inquired about Indonesia’s ability to achieve faster economic growth while maintaining controlled budget management. In response, the Finance Minister outlined the Indonesian Government’s commitment to maintaining a balance between economic growth and the sustainability of the State Revenue and Expenditure Budget (APBN) amid global uncertainties. “They liked our explanation that we will create faster economic growth without sacrificing fiscal policy prudence. That’s what they hold onto,” he said. Regarding investment interest, the Finance Minister conveyed that global investors, particularly from the United States, have shown interest in financial sector instruments, both fixed income and equity. “This is largely portfolio investment, not foreign direct investment (FDI). However, we are optimistic that in the near future, those funds will flow in and help strengthen Indonesia’s capital market,” stated Purbaya.