No Recession in Sight for Indonesia, Finance Minister Says

TEMPO.CO, Jakarta - Minister of Finance Purbaya Yudhi Sadewa ensures Indonesia will not head into recession, let alone a crisis due to the war in the Middle East. According to him, in theory, effectively implementing fiscal and monetary policies to encourage private sector participation should result in 6 percent economic growth.

“I strive to improve the business climate as optimally as possible,” said Purbaya at the Ministry of Finance office in Central Jakarta on Friday, March 27, 2026.

However, Purbaya said that various additional stimuli are still needed to speed up the process. Nevertheless, he asserts that these mechanisms are currently being activated, ensuring Indonesia will almost certainly not head into recession or crisis.

Purbaya responded to a statement claiming that several former ministers of finance and governors of Bank Indonesia said the Indonesian economy would collapse. According to him, the current situation is different because he holds the position of Minister of Finance and is committed to improving the situation.

Purbaya denied the notion that Indonesia will experience a crisis in the next two to three months. Purbaya stated that the statement is incorrect because the Ministry of Finance has carefully assessed Indonesia’s fiscal conditions and ensured that the situation remains under control.

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