Purbaya Rejects IMF Loan Offer, Citing Strong Economic Fundamentals

The Indonesian government has revealed the reasons behind Finance Minister Purbaya Yudhi Sadewa’s decision to reject a loan offer from the International Monetary Fund (IMF). The offer, valued between $20 billion and $30 billion, was made during the IMF-World Bank Spring Meetings held in Washington DC, USA, from 13 to 17 April 2026.

Herman Saheruddin, Acting Director General of Financial Sector Stability and Development at the Ministry of Finance, explained that the IMF offered a financing instrument designed to help countries face risks and emergency conditions. However, the Finance Minister assessed that Indonesia’s economic conditions were still strong enough that the facility was not required.

“The nature of the IMF is that they view things from a risk perspective. Their main product is financing to face risks,” Herman said in Jakarta on Thursday (25/6/2026).

Herman explained that the IMF is fundamentally an institution focused on risk mitigation, and therefore its projections tend to be more conservative. In contrast, the Finance Minister remained optimistic about the national economic prospects. With economic growth still maintained and a commitment to keep the state budget deficit below 3 percent of gross domestic product (GDP), accepting the IMF financing facility was deemed inconsistent with Indonesia’s fundamental economic conditions at the time.

“If we accepted that financing, it would mean we were in a high-risk condition. Our condition is under control, we were able to grow rapidly at that time, so being offered emergency funding, with all due respect, we did not need it then,” Herman clarified.

Herman further elaborated that the character of IMF financing differs from that of other multilateral institutions such as the Asian Infrastructure Investment Bank (AIIB) and the World Bank. He noted that AIIB financing is generally used to support commercial or project-based development, while the World Bank has a broader spectrum of financing, ranging from risk mitigation to development loans. The IMF, however, is more focused on providing financing to face emergency conditions or economic pressures.

“The difference is that the IMF places more emphasis on the risk side. The World Bank has a risk side, but also a development side,” Herman stated.

Previously, Finance Minister Purbaya revealed during a media briefing that the IMF and World Bank had prepared funds worth $20 billion to $30 billion to assist countries needing support amid global uncertainty, particularly due to the conflict in the Middle East. “I told them, I do not need the loan right now, because I have reserves of almost $25 billion,” Purbaya said. He expressed appreciation for the financing offer but confirmed that Indonesia’s fiscal condition remains adequate, making emergency funding support unnecessary.