Purbaya States Indonesia is Safe from Hyperinflation

Finance Minister Purbaya Yudhi Sadewa stated that Indonesia is still safe from hyperinflation. This comes after recent social media rumours suggesting hyperinflation was imminent. “There was talk of hyperinflation recently on TikTok. We’re heading towards hyperinflation, even though they don’t know what hyperinflation means,” Purbaya said, quoted from Kontan on Tuesday (5/5/2026). Even inflation rates of 4-5 per cent cannot be called hyperinflation. “It could be 4 per cent, it could be 5 per cent. That’s not hyperinflation. But they’re trying to scare people,” he explained. His statement is based on data from the Central Statistics Agency (BPS). Although he acknowledged price increases in some goods, inflation remains under control. “The last figure for April was only 2.4%. That’s the number I’ve been mentioning, so it’s still controlled,” he clarified. The economic zone will emulate the concept of the Dubai International Financial Centre (DIFC), which spans 100 hectares. “What we’re going to build is like in Dubai. It will become a special economic zone. There, certain common law will apply,” Purbaya said on Thursday (7/5/2026), quoted from Kompas.com. “Later, money there can be used to invest in Danantara projects or other projects outside the economic zone with good prospects,” he added. However, when used for investment and yielding results, the government will then impose taxes. “If during their time in the financial centre they request tax incentives, I’ll give them. But when it goes out and there’s profit, there are taxes and so on, the economy moves,” Purbaya stated.