Prabowo Explains Why Indonesia Rejected IMF Loan

President Prabowo Subianto has stated that the government previously rejected a loan offer from the International Monetary Fund (IMF). The rejection occurred when Finance Minister Purbaya Yudhi Sadewa was directly offered a loan by the IMF.

Prabowo explained that Purbaya declined the IMF’s loan offer on the grounds that Indonesia’s finances remain strong. According to him, Indonesia remains robust without IMF loans.

“I think a few months ago, our Finance Minister was surprised in Washington DC when he was offered a loan from the IMF. We rejected it, thank you! Indonesia can still manage without loans from the IMF,” Prabowo said in his remarks at the closing of the 35th NU Congress, as quoted from the Presidential Secretariat’s YouTube channel on Monday (31/8/2026).

Prabowo stressed that the government is committed to reducing dependence on foreign loans. Instead, the government is prioritising encouraging investment into the country rather than relying on foreign debt.

If loans are indeed necessary, he emphasised that financing must be selected carefully, particularly by considering interest rates.

“We are now trying not to borrow too much money from everywhere; if you want to invite investment, that is fine,” Prabowo explained.

Prabowo said the government has implemented various savings measures. The savings achieved are approaching Rp 300 trillion per year and will be directly channelled into various programmes that benefit the public.

“Our savings across various sectors are approaching, each year more than Rp 200 trillion, approaching Rp 300 trillion per year. This is the money that we are redirecting, that we are channelling as much as possible directly to the people,” Prabowo concluded.