Indonesian Political, Business & Finance News

Purbaya Explains 'Survival Mode': Not a Sign of Crisis, a Way to Safeguard the State Budget and Plug Leaks

| | Source: KOMPAS Translated from Indonesian | Finance
Purbaya Explains 'Survival Mode': Not a Sign of Crisis, a Way to Safeguard the State Budget and Plug Leaks
Image: KOMPAS

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa has clarified the term “survival mode” he used to describe the direction of economic policy. He emphasised that the term does not signal that Indonesia is in a crisis condition.

Purbaya stated that the approach reflects the government’s efforts to work more disciplined amid global pressures. The main focus is directed towards safeguarding the strength of the State Revenue and Expenditure Budget (APBN).

“It means we can’t mess around anymore. It means if we don’t have room to play around with all the luxuries where there are opportunities that we can create,” said Purbaya during a media briefing at the Financial Education and Training Agency (BPPK) in South Jakarta on Friday (24/4/2026).

The government is now closing gaps in inefficiencies, curbing revenue leakages, and ensuring programmes run effectively. This step is deemed important to maintain national economic competitiveness.

“If the taxes are messed around with, we’ll be ruined, roughly speaking. If the programmes are messed around with, we’ll be ground down by other nations. So we’re in survival mode,” he said.

The approach is also accompanied by strengthened oversight. The government is tightening state spending, taxation, and customs duties. President Prabowo Subianto has also formed a task force for accelerating development to oversee programme implementation.

Purbaya acknowledged that reforms in the tax and customs sectors are already underway. However, he sees that there are still leakage spaces that need to be closed.

“Although it’s already advanced, customs and taxes. But we still see leakages, even leakages in various places that can still be closed. So that’s what’s called survival mode,” he said.

The statement also addresses the issue claiming that state coffers are left with Rp120 trillion. Purbaya emphasised that the figure is only part of the Budget Surplus Balance (SAL).

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