Indonesian Political, Business & Finance News

How Purbaya Accelerates Indonesia's Economy Without Additional Budget

| | Source: KOMPAS Translated from Indonesian | Economy
How Purbaya Accelerates Indonesia's Economy Without Additional Budget
Image: KOMPAS

Finance Minister Purbaya Yudhi Sadewa has a trick to accelerate Indonesia’s economy despite no additional budget. The method involves injecting government surplus budget funds (SAL) held at Bank Indonesia (BI), worth Rp300 trillion, into the banking sector. This policy encourages the banking sector’s intermediation function by channelling credit to the real economy system. This step, called the invisible hand, is a government strategy without directly intervening in the market. Thus, without additional budget, the wheels of the economy are sped up more quickly. According to him, this strategy is quite successful and shows positive impacts. The government has a target to improve the economy even further; if other programmes run, the results will be more visible. “Looking at the current results, it seems the strategy has borne fruit, right? It seems the strategy is quite fitting and accurate. Later, if other new programmes also run and their impact starts to show in the economy, the growth should be faster,” he said. “So our economy is experiencing acceleration, which many people are not aware of, so people are a bit scared and exit the capital market,” Purbaya explained, quoted from Kompas.com, Tuesday (5/5/2026). The economic growth in the first quarter of 2026 reached 5.61 percent, making Purbaya confident about future prospects. In addition, President Prabowo conveyed to Purbaya that the state finances are sufficient.

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