Purbaya: Indonesia's Economy Far from Crisis, Potential to Grow up to 5.7 Percent

JAKARTA - Finance Minister Purbaya Yudhi Sadewa has emphasised that Indonesia’s economic condition is still far from a crisis. In fact, he is optimistic that national economic growth has the potential to approach 6 percent amid global dynamics. Purbaya stated that this confidence is supported by several economic indicators that still show an expansion trend, as well as the market players’ optimistic outlook on Indonesia’s prospects. He explained that indicators such as consumer surveys, Purchasing Managers’ Index (PMI), and motor vehicle sales still demonstrate growth. This condition reflects ongoing economic activity. “If those indicators do not rise, I cannot say the economy is growing,” he said. “Who says crisis? Traffic jams everywhere, people are shopping. That means purchasing power is still there,” he stressed. Amid global pressures, including the surge in world oil prices, the government is said to still be able to mitigate the impact through the State Revenue and Expenditure Budget (APBN). Furthermore, the government is currently focused on maintaining adequate economic liquidity and ensuring that state expenditure is disbursed on time. According to Purbaya, if fiscal and monetary policies work in tandem to drive the business sector, achieving the economic growth target of up to 6 percent should not be difficult. “If the fiscal and monetary engines can drive the private sector, growing 6 percent should not be too difficult,” he said. He also emphasised that Indonesia is not in a condition heading towards recession, but rather in a phase of accelerating growth. On the other hand, the government ensures that budget efficiency will not disrupt priority programmes, including the Free Nutritious Meals Programme (MBG). “I will not cut MBG. As long as efficiency does not reduce quality, I agree,” said Purbaya. With strong domestic consumption, fiscal policy support, and improvements in the business climate, the government hopes that the economic growth momentum can be maintained throughout this year.