Prabowo: Indonesia Can Still Function Without IMF Loans, says BCA Securities

President Prabowo Subianto stated that Indonesia has rejected loan offers from the International Monetary Fund (IMF) because the country remains capable of conducting development without relying on loans from the institution.

Prabowo made these remarks during his closing speech at the 35th Nahdlatul Ulama (NU) Congress at the Bahrul Ulum Islamic Boarding School in Tambakberas, Jombang Regency, East Java, on Monday.

“I believe that a few months ago, it was surprising; our Finance Minister in Washington DC was offered a loan from the IMF, and we rejected it. Thank you, but Indonesia can still manage without IMF loans,” said Prabowo.

The President stated that while the government remains open to investment, if borrowing becomes necessary, the government seeks loans with the lowest possible interest rates.

“We are currently striving not to borrow too much money from various sources. Inviting investment is welcome. If we do borrow money, we want to borrow at the smallest possible interest rate,” the President added.

Furthermore, the Head of State noted that the primary focus of the government’s transformation strategy is to increase public welfare and lift as many Indonesians as possible out of poverty.

“We must be brave, and I have calculated this carefully, down to the last rupiah. I have calculated it, and I am confident and believe that we will succeed,” said Prabowo.

Prabowo mentioned that the government aims to see millions of Indonesians escape poverty, asserting that these achievements would begin to be evidenced within the first two years of his administration.

It is noted that in mid-April, Finance Minister Purbaya Yudhi Sadewa held a strategic meeting with IMF Managing Director Kristalina Georgieva during his agenda in Washington DC, USA. During that meeting, Purbaya confirmed that Indonesia possesses an adequate fiscal buffer. He explained that the IMF highlighted that global uncertainty is expected to persist in the near future, driven by geopolitical tensions and energy price dynamics.

While the IMF acknowledged it lacks the authority to reduce global uncertainty, the international institution prepares financial support for countries in need of assistance.

“Of course, Indonesia does not need [assistance], because our budget is sufficiently good and we still have a large enough buffer, which is Rp420 trillion,” said Purbaya.