Purbaya Assures Investors: Indonesia's Fiscal Strategy is Credible and Sustainable

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa has stated that global investors’ doubts regarding Indonesia’s fiscal condition are beginning to subside. This was conveyed by Purbaya after the government actively explained the direction of economic policies during a series of meetings in the United States. Purbaya revealed that the government has met with several major investors, international financial institutions, and rating agencies to clarify various negative perceptions related to the State Revenue and Expenditure Budget (APBN). In meetings with the International Monetary Fund (IMF), led by Executive Director Kristalina Georgieva, as well as officials from the World Bank and S&P Global Ratings, the government emphasised its commitment to maintaining a balance between economic growth and fiscal sustainability. Purbaya claimed that the responses received were largely positive. Investors and international institutions are increasingly understanding that Indonesia’s fiscal strategy remains on a measured path. He added that there is even a view from market players that changes in outlook by some rating agencies were too hasty, given that the latest economic data have not yet been fully reflected. In addition to improving perceptions, the government is also encouraging enhanced communication with global investors to prevent misunderstandings about policy directions. Regarding investment interest, Purbaya noted that investor appetite remains strong, particularly in financial instruments such as bonds (fixed income) and shares (equity). “This is largely portfolio investment, not FDI. However, we are optimistic that in the near future, those fund flows will enter and help strengthen Indonesia’s capital market,” he said. Amid global uncertainties, including geopolitical impacts and energy price fluctuations, the government also affirmed that Indonesia’s fiscal condition remains solid. According to Purbaya, Indonesia has adequate budget buffers, enabling it to absorb various external pressures without disrupting economic stability.