Global Institutions Give Positive Response to Indonesia’s Fiscal Policy
Global Institutions Give Positive Response to Indonesia’s Fiscal Policy
16 Apr 2026 06:50 WIB
Voice of Indonesia
Key Points
Finance Minister Purbaya Yudhi Sadewa said that the World Bank and international rating agencies, including S&P Global Ratings, have recognized Indonesia’s fiscal policy direction.
He explained that this appreciation reflects growing confidence in Indonesia’s ability to maintain fiscal stability while simultaneously driving economic growth.
RRI.CO.ID, Jakarta – Indonesia’s fiscal policy direction under President Prabowo Subianto has received strong international recognition, with support from the International Monetary Fund (IMF), the World Bank, global rating agencies, and leading investors.
Finance Minister Purbaya Yudhi Sadewa attended a series of strategic meetings in Washington, D.C., on April 14–16, 2026, engaging with IMF Managing Director Kristalina Georgieva, senior World Bank officials, representatives of S&P Global Ratings, and 18 major global investors, including Goldman Sachs and Fidelity Investments.
Minister Purbaya emphasized Indonesia’s commitment to balancing economic growth with fiscal sustainability, even amid heightened global uncertainty driven by geopolitical tensions and energy price fluctuations. “Doubts about whether we can implement sound fiscal policies and foster strong growth simultaneously seem to have dissipated,” he said, as quoted on the ministry’s official website.
The IMF highlighted ongoing global risks but acknowledged Indonesia’s strong fiscal fundamentals and budgetary buffers to withstand external shocks. Meanwhile, the World Bank expressed interest in expanding cooperation, particularly in financing strategic projects, long-term development, and poverty alleviation.
Global rating agencies and investors praised Indonesia’s fiscal discipline, noting that the government has sustained growth momentum without placing excessive pressure on the state budget. “They appreciated our explanation that we will achieve faster economic growth without compromising fiscal prudence,” Minister Purbaya added.
Investment interest from US-based institutions is concentrated in fixed-income and equity instruments. While dominated by portfolio flows rather than foreign direct investment, these inflows are expected to strengthen Indonesia’s capital market in the near future.
Overall, the meetings reinforced international confidence in Indonesia’s fiscal strategy and opened the door to deeper cooperation with global partners. ***
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