Purbaya Denies Narrative of Indonesia's Condition Resembling 1998 Crisis: Indonesian Economy Still Expanding

JAKARTA, KOMPAS.TV - Finance Minister Purbaya Yudhi Sadewa has denied the narrative suggesting that Indonesia is heading towards an economic crisis like the 1998 crisis. He emphasised that the national economy is currently still in an expansion phase, not a recession.

“It must be understood that a recession means negative economic growth. Currently, we are still in an expansion phase. Therefore, the narrative that Indonesia is heading towards a crisis like 1998 is inaccurate,” said Purbaya during a press conference in Jakarta on Tuesday (5/5/2026), as monitored from the KompasTV Breaking News broadcast.

This statement responds to various speculations circulating in the market regarding the weakening global economy. According to him, the data actually shows that Indonesia’s economic performance remains solid.

“Many previously predicted that the economy would weaken, even enter a recession, but in fact, it has instead improved,” he asserted.

Purbaya explained that several key indicators show the economy remains stable.

The trade balance surplus is still maintained at around $3.32 billion, with exports reaching $66.48 billion and imports $61.30 billion for January–March 2026.

In addition, inflation up to April 2026 was recorded at around 2.4 per cent, still within the government’s target range of 2 ±1 per cent.

“The narrative regarding hyperinflation is clearly unfounded. Price increases are still controlled and do not significantly erode purchasing power,” he stated.

The Finance Minister also clarified issues related to government liquidity. He assured that the state cash position remains safe and is managed actively.

He added that cash management is now carried out in a more modern manner with daily monitoring like a corporate treasury system.