Foreign Media Criticises Indonesia's Budget Deficit, Purbaya: We Should Be Praised!

Finance Minister Purbaya Yudhi Sadewa has responded to reviews by The Economist magazine which criticised several of Indonesia’s fiscal policies during the administration of President Prabowo Subianto. He asserted that Indonesia’s fiscal condition remains superior to that of several other countries. Purbaya explained that the current state budget deficit is highly controlled, remaining below 3% of GDP; notably, last year the deficit stood at 2.8%.

“Our fiscal position can be controlled below 3% of GDP. Last year, the deficit was not 2.9%, but 2.8% of GDP. Therefore, there is no issue. We are currently calculating the current deficit as well,” said Purbaya at Halim Perdanakusuma Air Force Base, Jakarta, on Monday (18/05/2026).

Purbaya refuted The Economist’s analysis suggesting that Indonesia’s fiscal condition is in disarray. He suggested that The Economist should examine the fiscal policies of European nations, noting that many European countries are currently facing very high budget deficits and debt levels.

“So, if The Economist views our fiscal policy as messy, they should look at the policies of European countries—how high their deficits and debts are. They are all approaching 100% of GDP,” he stated.

Regarding Indonesia’s national debt, Purbaya noted it stands at approximately 40% of GDP. Consequently, Purbaya believes that The Economist should be praising Indonesia instead.

It is noted that The Economist published two articles on 14 May 2026 criticising government policies, titled “Indonesia, the Biggest Muslim-Majority Country, Is on a Risky Path” and “Indonesia’s President Is Jeopardising the Economy and Democracy.” These articles criticised various policies of President Prabowo, ranging from budgets for flagship government projects, industrial downstreaming, social programmes, and village cooperatives, to leadership and the formation of Danantara, viewing them as risks to both Indonesia’s economy and democracy.