Purbaya: Indonesia Will Not Head Towards Recession, Let Alone Crisis

Finance Minister Purbaya Yudhi Sadewa has assured that Indonesia will not head towards recession, let alone crisis, due to the war occurring in the Middle East. According to Purbaya, in theory, if the fiscal and monetary engines are run well to encourage the private sector’s role, 6% economic growth should be achievable. “I am endeavouring to improve the business climate as optimally as possible,” said Purbaya at the Ministry of Finance office in Central Jakarta, on Friday, 27 March 2026. However, in the field, Purbaya said, various additional boosts are still needed so that this pace can proceed more quickly. Nevertheless, Purbaya emphasised that these engines are currently being activated, so Indonesia will almost certainly not head towards recession or crisis. Purbaya also responded to a statement from someone who claimed to have discussed with several former Finance Ministers and former Bank Indonesia Governors, who said Indonesia’s economy would collapse. According to Purbaya, the current situation is different because he is serving as Finance Minister and is committed to fixing the situation. Purbaya refuted the assumption that Indonesia would experience a crisis in the next two to three months. Purbaya stated that such a statement is untrue because the Ministry of Finance has carefully calculated Indonesia’s fiscal condition and ensured that the situation remains under control.