Purbaya: Indonesia Implements "Survival Mode" to Face Global Uncertainty

Finance Minister Purbaya Yudhi Sadewa has stated that the government is currently implementing a “survival mode” amid global uncertainties. He conveyed President Prabowo Subianto’s view that, in such conditions, Indonesia must optimise all resources to keep economic growth running at maximum capacity, no longer following a business-as-usual approach. “I want to explain that in the President’s mind, we are now in a survival situation, so it’s not business as usual,” he said at the PT SMI 2026 Symposium in Jakarta on Wednesday. According to Purbaya, this approach is being taken to maintain the 8 per cent economic growth target. In this regard, the government has established various task forces to secure state revenues, state expenditures, and improve the business climate. “So if you look, there is the PKH Task Force (Forest Area Regulation Task Force) where encroachments and deviations in forest areas are being addressed; that is a serious step by the President,” he explained. Therefore, the government is also carrying out comprehensive reforms in governance, including ensuring that the management of natural resources provides optimal returns for the state. “I emphasise here that we are in survival mode. Everything must be run as maximally as possible. No more messing around,” he stressed. Furthermore, he explained that the President’s policy direction includes several priority programmes, such as infrastructure development, strengthening energy resilience, and regional economic development. The government is also promoting budget efficiency and increasing industrial capacity to enhance value added, including through the development of the chemical sector and export-based downstreaming. In the context of energy resilience, the government is striving to diversify supply sources so as not to depend on one or two points. This step is considered important to maintain stability amid global disruption risks. “If all this runs, investment will come in, and job opportunities will also open up,” said the Finance Minister. From a fundamental perspective, the State Treasurer assesses that Indonesia’s economy is still quite strong. Fiscal stability, policy credibility, and the large contribution of domestic demand are the main supports. He noted that around 90 per cent of the national economy is still driven by domestic consumption, so maintaining people’s purchasing power is key. He cited the 2009 global crisis, when Indonesia still managed to grow by 4.6 per cent while many countries experienced contraction.