Government Enters Survival Mode, Economist: Not a Crisis, but Beware of Global Pressures
JAKARTA, KOMPAS.com - The government is altering its approach to managing the economy amid increasing global pressures.
Finance Minister Purbaya Yudhi Sadewa stated that policy direction is no longer proceeding as usual but has entered ‘survival mode’.
“I want to explain, in the President’s mind, we are now in a survival condition, so it’s not business as usual,” he said at the PT SMI 2026 Symposium in Jakarta.
This term has sparked public attention because it is often associated with crisis conditions.
Head of the Macroeconomic and Finance Centre at the Institute for Development of Economics and Finance (Indef), M Rizal Taufikurahman, explained that survival mode reflects a policy shift from expansion to stabilisation.
“What I understand, the ‘survival mode’ mentioned reflects a reorientation of policy from expansion to stabilisation.
The government is no longer pursuing aggressive growth acceleration but focusing on keeping the economy growing amid pressures,” Rizal told Kompas.com on Friday (24/4/2026).
According to Rizal, this means the government now prioritises maintaining minimum societal purchasing power, fiscal stability, and reducing risks, rather than pushing for high growth.
Rizal assessed that this step is taken due to strengthening external pressures, such as global turbulence affecting exports, capital flows, and exchange rates.
On the other hand, domestic fiscal space is increasingly limited, while state spending needs are rising.
This combination requires the government to be more cautious to maintain economic stability without taking excessive fiscal risks.
He emphasised that this condition does not mean Indonesia is in crisis, but rather an anticipatory phase to prevent the economy from worsening.
“The implication for society is not a crisis, but a slowdown in welfare improvements,” said Rizal.
According to him, in this situation, economic stimulus is no longer aggressive, subsidies become more selective, and boosts to societal purchasing power are limited.