Indonesian Business Owners Fear Crisis, Purbaya: Many Are Trying to Scare People
Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has revealed that Indonesia’s economy remains healthy and strong amid current global shocks. In fact, the Indonesian economy recorded growth of 5.61 per cent in the first quarter of 2025.
He is confident that economic growth will remain stable moving forward. According to him, the key to growth in the second quarter of 2026 is the purchasing power of the population. Therefore, the government will undertake various efforts to protect consumers and the domestic market.
However, he acknowledged that there are still significant pressures on the business world in Indonesia, even though economic growth is good.
“I continuously monitor the situation (of the business world), it seems that although it’s good, people are still a bit scared. Because many are trying to scare people, like you are trying to scare people, saying it’s going to be like 1998,” said Purbaya, quoted on Thursday (7/5/2026).
He urged business owners and entrepreneurs not to fear the state of the Indonesian economy. He assured that the economy will improve moving forward. He also added that liquidity in the financial markets is sufficient to ensure the economy runs smoothly.
“Business people don’t need to be afraid, we will continue to improve going forward. We will ensure that the banking sector has enough money in the economic system so that the business world can access purchases,” he said.
On this occasion, Purbaya even promised cheap credit for the textile industry, footwear, and other export-oriented manufacturing sectors for machine renewal.
This cheap credit, he stressed, will be provided by the Indonesia Export Financing Agency (LPEI) or Indonesia Eximbank, and the sectors will be coordinated with the Ministry of Industry.
“Those that need machine renewal will be ensured access to lower interest rates or LPEI rates of 6 per cent, if I’m not mistaken. If necessary, we lower it, we lower it,” said Purbaya.
Purbaya admitted to having held meetings with textile industry players and textile product manufacturers for the provision of these cheap credit facilities. Therefore, he is confident in offering this facility to LPEI so that machine renewal can be carried out.
“Because it’s considered a sunset industry, it’s very difficult to get loans from banks, that’s why I used LPEI earlier, we’ve already met with textile companies or associations, and we will implement it in not too long a time,” he explained.