Purbaya Affirms Government Economic Optimism Is Based on Measured Calculations

Finance Minister Purbaya Yudhi Sadewa has said that optimism about the fundamentals of the national economy is based on measured calculations and policy steps. He spoke at Jogja Financial Festival (JFF) 2026. “It’s not over-optimistic; it’s a calculated move. We have calculated our steps, we look at their impact, and we think they will indeed lead us there.” He said Indonesia’s economy continues to show positive performance. In Q1 2026, economic growth reached 5.61 percent, supported by household consumption, investment, and the acceleration of government consumption. “Now our economy’s engines are starting to move on two fronts—the government engine and the private sector engine. And we will continue to drive this forward,” he added. Purbaya also stated that the state budget remains managed prudently and effectively to sustain growth momentum while safeguarding fiscal health. The budget deficit is contained at 0.64 percent of GDP, or IDR 164.4 trillion, as of 30 April 2026. “The deficit has not grown, but our economic growth is faster than anticipated. So we can manage the budget more efficiently and ensure the private sector is more alive,” Purbaya said. On the other hand, the government continues to strengthen the investment climate and ease of doing business through cross-ministerial coordination. There is also a task force to accelerate the resolution of various investment obstacles, through periodic debottlenecking sessions. Purbaya also highlighted the high level of global investor confidence in Indonesia’s economy, reflected in Indonesia’s global bond issuances that have been positively received amid volatility in global financial markets. He said investor interest in Indonesian debt securities signals market confidence in the credibility of fiscal policy and the nation’s economic prospects. Purbaya emphasised that the government will continue to maintain the synergy of fiscal, monetary, and financial sector policies to strengthen stability while fostering inclusive and sustainable economic growth.