Purbaya States S&P Global Not Concerned by MBG and Merah Putih Cooperatives, But This is What Causes Anxiety

Jakarta, VIVA – Government priority programmes, including the Free Nutritious Meals (MBG) and the Merah Putih Village/Sub-district Cooperatives (KDKMP), are assessed to pose no pressure on the national fiscal condition. This was stated by Finance Minister Purbability Yudhi Sadewa in response to assumptions that these two populist programmes would burden the State Budget (APBN).

Purbaya emphasised that both programmes are designed with flexible schemes, allowing them to be adjusted according to economic developments and the state’s budgetary requirements. “There is no need to fear our fiscal condition. Everything can be monitored, managed, and controlled,” Purbaya stated on Saturday, 6 June 2026.

According to him, international rating agencies such as S&P Global do not raise issues regarding the existence of the government’s priority programmes from a fiscal health perspective. The emerging concerns are instead related to the perceptions and sentiments developing within the market.

“When I last met with S&P, they did not actually make an issue of it. They were only concerned with sentiment, questioning or worrying about the negative sentiment present in the market; that is all. But in terms of the foundation, there is no problem,” he explained.

He added that the government maintains the space to keep the budget deficit at a safe level even as various priority programmes are implemented simultaneously. “Because we can ensure that even with these programmes, we can maintain the deficit at 2-3 per cent. And if, for instance, global oil prices rise, it can be controlled as needed,” said Purbaya.

Negative Sentiment Impacts Rupiah and JCI

Purbaya assessed that the weakening of the rupiah exchange rate and the Jakarta Composite Index (IHSG) is largely influenced by negative sentiment towards the national economy. He believes this perception does not align with Indonesia’s fundamentally solid economic condition.

He reaffirmed that the national economic condition remains stable, as reflected by the strong performance of the State Budget (APBN) and economic activities across various regions, which continue to show positive growth trends. “The main obstacle is the negative perception of our economy, which is not entirely accurate. Because our APBN is good, and the economy is growing quite well,” said Purbaya on Saturday (6/6/2026).