Prabowo: Indonesia can still manage without IMF loans

President Prabowo Subianto has said Indonesia rejected a loan offer from the International Monetary Fund (IMF) because the country is still capable of carrying out development without depending on loans from the institution.

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

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

“We are now trying not to borrow too much money from anywhere. Inviting investment is fine. If we do borrow money, we want to borrow money with the smallest possible interest rate,” the President said.

Furthermore, the Head of State said the main focus of the transformation strategy being implemented by the government is to improve public welfare and lift as many Indonesians as possible out of poverty.

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

Prabowo said the government is targeting millions of Indonesians to escape poverty. He also said this achievement is beginning to be demonstrated in the first two years of his administration.

In the meeting, Purbaya confirmed that Indonesia has adequate fiscal buffers. He explained that the IMF highlighted that global uncertainty will continue for some time, driven among other things by geopolitical tensions and energy price dynamics.

The IMF admitted it does not have the authority to reduce the level of global uncertainty.

However, the international institution is preparing funding support should any country require assistance.

“Of course, Indonesia does not need assistance, because our budget is quite sound and we still have a sizeable buffer of Rp420 trillion,” Purbaya said.