Finance Ministry Official Reveals Why Minister Purbaya Rejected IMF Loan Offer

The Ministry of Finance has shed light on the reasons behind Finance Minister Purbaya Yudhi Sadewa’s decision to reject a loan offer from the International Monetary Fund (IMF). The offer, valued between USD 20 billion and USD 30 billion, was made during the IMF-World Bank Spring Meeting in Washington DC, held from 13 to 17 April 2026.

Herman Saheruddin, Acting Director General of Financial Sector Stability and Development at the Ministry of Finance, explained that the IMF is fundamentally a risk mitigation institution, and its projections tend to be more conservative. He noted that the financing instruments offered by the IMF are specifically designed to help countries deal with risks and emergency conditions.

“Because their nature is to see things from the risk side. Their main product is financing to face risks,” Herman stated in Jakarta on Thursday. He added that Minister Purbaya remained optimistic about the national economic outlook and was committed to maintaining the state budget deficit below 3 percent of gross domestic product (GDP). Accepting the IMF facility was therefore deemed inconsistent with Indonesia’s current economic fundamentals.

“If we accepted that financing, it would mean we were taking financing to face high-risk conditions. Our condition is under control, we were growing strongly at the time, so we were offered emergency funding. With all due respect, we simply did not need it then,” Herman clarified.

Herman further distinguished the nature of IMF financing from that of other multilateral institutions such as the Asian Infrastructure Investment Bank (AIIB) and the World Bank. He explained that AIIB financing is typically used to support commercial or project-based development, whilst the World Bank has a broader spectrum, ranging from risk mitigation to development loans. The IMF, however, focuses more on providing financing for emergency situations or economic pressures.

Previously, Minister Purbaya had revealed that the IMF and World Bank prepared the funds to assist countries in need amidst global uncertainty, particularly due to conflicts in the Middle East. He told the institutions that Indonesia did not require the loan, as the country already held reserves of nearly USD 25 billion. “I told them, I do not need the loan right now, because I have reserves of almost USD 25 billion myself,” Purbaya said, adding that the IMF and World Bank’s funds were intended for multiple countries, whereas Indonesia’s reserves were held solely for its own use.