Purbaya Rebukes Analysts: Risk of Hyperinflation in Indonesia Still Far Away!

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has assured that the government will protect Indonesia’s economic growth from global uncertainties. He made this statement during the APBN KITA press conference at the Ministry of Finance office on Tuesday (5/5/2026). He also confirmed that Indonesia’s economy will not ‘overheat’ or become too hot due to excessively rapid growth that could drive up inflation. This condition is typically caused by surges in liquidity, banking credit, or overly expansionary monetary policies. “So this is a good thing; the government will ensure everything remains controlled so our economy doesn’t overheat. Those analysts need to learn again,” he said. Purbaya stressed that the government and the central bank will continue to manage the money supply in the financial system to support economic growth. As such, Purbaya remains confident that credit in the country will gradually increase. This means Indonesia’s economy will run well, supported by the private sector. “This is what I said before; I want to run the private sector engine and the government engine.” This is evidenced by Indonesia’s economy growing by 5.61% in the first quarter of 2026. This provides a strong foundation for growth towards 6%. Clearly, said Purbaya, this is a gradual and consistent achievement. “Some say (Indonesia is) heading towards hyperinflation, (inflation) could be 4%-5%, scaring people, but it turns out inflation in April was 2.4%,” he asserted. “This (2.4%) is a perfect figure… we ensure inflation will remain controlled. So our economy is not overheating, hyperinflation is still far away. Those analysts must learn,” added Purbaya. This proves that the government is present to control so that rising prices of goods do not erode the public’s economic capacity. Thus, Purbaya assures that the risk of hyperinflation in Indonesia is still far away and will not occur.