Meeting with IMF, Finance Minister Assures Indonesia Has Adequate Fiscal Buffers
Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa assured that Indonesia has adequate fiscal buffers during a meeting with International Monetary Fund (IMF) Managing Director Kristalina Georgieva.
In a press statement received in Jakarta on Wednesday, Purbaya explained that the IMF highlighted the persistence of global uncertainties in the coming period, driven among others by geopolitical tensions and energy price dynamics.
The IMF stated that it lacks the authority to reduce the level of global uncertainty.
However, the international institution is preparing funding support if any country requires assistance.
“Of course, Indonesia does not need (assistance), because our budget is in good shape and we still have substantial buffers, namely Rp420 trillion,” Purbaya said.
Furthermore, the State Treasurer revealed that the IMF is paying attention to Indonesia’s ability to withstand the current global uncertainties.
Purbaya also explained that the Indonesian Government has adopted strategic manoeuvres by shifting fiscal policy directions since the end of last year, the impacts of which are already evident in the current economy.
These strategic changes have also enhanced Indonesia’s capacity to respond to pressures more effectively, including when global oil prices surge.
“She (Kristalina Georgieva) seems pleased with the situation,” he added.
Although the IMF does not formulate specific policies to alleviate global pressures, according to Purbaya, the institution will announce countries that are able to maintain good performance.
In that context, Purbaya is optimistic that doubts about Indonesia’s fiscal policies have subsided.
In addition to meeting the IMF, Purbaya also held strategic meetings with World Bank executives and representatives from international rating agencies such as S&P Global Ratings.
According to him, these various global institutions appreciate the direction of Indonesia’s fiscal policy strategy under the leadership of President Prabowo Subianto.
The World Bank also expressed interest in deepening cooperation with Indonesia, particularly in supporting long-term development, poverty alleviation, and financing strategic projects in developing countries.