Purbaya: Indonesia's Economic Engine in Prime Condition

Minister of Finance Purbaya Yudhi Sadewa stated that Indonesia’s economic growth engine is currently in prime condition, supported by sound, prudent, and well-maintained fiscal management. According to him, the budget deficit has consistently remained below the 3% threshold mandated by law. The statement was made by Purbaya during a scientific speech at a public lecture at Nankai University, Tianjin, China. “I hope this dialogue strengthens academic exchange, deepens mutual understanding, and further enhances the friendship between Indonesia and China,” Purbaya said in an official statement on Saturday, 20 June 2026. On the occasion, Purbaya presented Indonesia’s perspective on economic policy, fiscal management, and sustainable national development. He stated that the Indonesian economy continues to show strong performance amid stabilising global market conditions, as volatility subsides and risk sentiment improves. According to Purbaya, this is reflected in Indonesia’s economic growth in the first quarter of 2026, which reached 5.61% year-on-year. This figure places Indonesia above the average growth rate of G20 and ASEAN countries. At the same time, price stability is also maintained with an inflation rate of 3.08% in May 2026. “These developments prove that Indonesia entered this period with strong growth, controlled inflation, and credible policy resilience,” Purbaya said. Purbaya also stated that Indonesia is in a favourable position to face the risk of global energy disruptions. Based on the risk analysis he presented, Indonesia is in a quadrant of low exposure with strong buffers. Indonesia’s energy resilience score reached 77%, higher than China’s 76% and slightly below South Africa’s 79%. According to Purbaya, this resilience is supported by a healthy and prudent fiscal policy mix. Maintaining the budget deficit below 3% provides room for the state budget (APBN) to function as a shock absorber in facing external turmoil without sacrificing macroeconomic stability.