Purbaya Unveils Prabowo's Economic Strategy, Not Just About MBG

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa said the direction of policy and economic strategy put forward by President Prabowo Subianto is not limited to the Free Nutritious Meals (MBG) programme. He emphasised this when answering a question from CT Corp founder Chairul Tanjung about the government’s strategy to control the fiscal deficit, at the Jogjakarta Financial Festival at the Jogja Expo Centre (JEC) on Friday, 21 May 2026. “Many people don’t understand Mr Prabowo’s steps. What is he busy with? with MBG? No — Mr Prabowo is also activating the private sector,” Purbaya said. The government, he said, is ensuring that government spending continues and the money in the economic system is sufficient. In this way, circulating money can energise the private sector and the economy’s engine moves with both government and private sector. “This is what we will pursue going forward,” he said. He also recounted when he first became Finance Minister. He realised there were distortions in the finances. Therefore, he asked for permission from President Prabowo Subianto to move Rp 200 trillion of the APBN money into the banking system. He forced banks to channel that money. “If not, they would have to pay me interest, they’d be worse off,” he said. From this policy, the fiscal deficit in Q1-2026 breached 0.93% of GDP. However, Purbaya explained this was because all spending was pulled to the start of the year. Thereafter, entering Q2-2026, the deficit began to improve. In April 2026, the APBN deficit fell to 0.64% of GDP. This, he said, was also due to improvements in tax revenue. It was also linked to reforms in tax and customs. “March deficit 0.93%, according to analysts, the deficit could be 3.6% but in April because taxes were strong and other factors, I have reformed taxation and customs, our deficit is down to 0.64% and the primary balance is already positive,” he said. “Meaning fiscal sustainability has been achieved,” Purbaya insisted.