Reasons Purbaya Rejects Loan of up to Rp 514 Trillion from IMF-World Bank

The Indonesian government has decided to reject a loan offer from the International Monetary Fund (IMF) and the World Bank amounting to $25 billion to $30 billion, amid increasing global uncertainties stemming from geopolitical conflicts. That figure is equivalent to approximately Rp 428.5 trillion to Rp 514.2 trillion. Finance Minister Purbaya Yudhi Sadewa assessed that Indonesia’s current fiscal condition is still sufficiently strong, so additional debt from those international institutions is not yet needed. He explained that the government still has a fiscal buffer in the form of a Budget Surplus Balance (SAL) reaching around Rp 420 trillion, or equivalent to nearly $25 billion. That reserve is deemed sufficient to maintain the country’s financial stability without having to add new debt. According to Purbaya, this decision was taken as part of a strategy to maintain fiscal independence, while ensuring debt management remains within safe limits amid global pressures. Purbaya emphasised that every fiscal policy is designed in a measured manner, considering long-term impacts, rather than merely a short-term response to the global situation. “The point is, we design policies well, we calculate the impacts, not just guessing,” he said. Purbaya also revealed a unique response from the IMF and World Bank sides when Indonesia rejected the offer. “Well, their faces were sour because they didn’t get to lend, no interest earned,” he remarked. The loan offer was received during Purbaya’s visit to Washington DC, United States, from 13 to 17 April 2026. Purbaya mentioned that in that meeting, the IMF and World Bank offered financing facilities as a precautionary measure against the impacts of global conflicts, including the war between the United States, Israel, and Iran. This step also reflects the government’s efforts to maintain fiscal discipline amid global uncertainties, without relying on external financing that could potentially add to future interest burdens.