Fiscal Position Remains Strong, Purbaya Rejects IMF and World Bank Loan Offers
Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has rejected loan offers from the International Monetary Fund (IMF) and the World Bank, as Indonesia’s fiscal condition remains relatively strong.
During a media briefing at the Ministry of Finance office in Jakarta on Tuesday, Purbaya explained that the IMF and World Bank are preparing funds worth 20-30 billion USD to assist countries needing support amid global uncertainties, particularly due to the Middle East conflict.
“I told them (the IMF and World Bank), I don’t need (loans) right now, because I have reserves of nearly 25 billion USD (equivalent to Rp428.77 trillion at an exchange rate of Rp17,150 per USD) myself,” Purbaya said.
Purbaya received the loan offer while attending the IMF-World Bank Spring Meeting series from 13-17 April in Washington DC, United States.
Purbaya expressed appreciation for the loan offer from the two international institutions. However, the Finance Minister assured that the current State Revenue and Expenditure Budget (APBN) condition is still adequate and does not require support.
“I still have 25 billion USD in funds that we hold for the country itself. They (IMF and World Bank) have 25 billion USD for several countries. So, our financial condition is still safe,” he stated.
Previously, Purbaya said the IMF praised Indonesia as one of the bright spots in the global economy.
The IMF also appreciated Indonesia’s credible policies and other measures taken to maintain economic stability.
Purbaya also explained that the Indonesian Government has taken strategic manoeuvres by shifting fiscal policy direction since the end of last year, the impact of which is already visible in the current economy.
This strategic shift has also enabled Indonesia to respond better to pressures, including when global oil prices soar.
In front of the IMF and World Bank, Purbaya conveyed optimism that Indonesia’s economy can achieve 5.4-6% growth in 2026 despite ongoing global tensions.