Tanah Abang Inspection: Consumer Spending Safe, Economy Far from Crisis, Says Purbaya

Jakarta — Finance Minister Purbaya Yudhi Sadewa stated that consumer purchasing power remains secure and the economy continues to be far from crisis following a surprise inspection at Tanah Abang Market in Jakarta.

Speaking to journalists in Jakarta on Monday, Purbaya explained that he visited Tanah Abang Market after hearing speculation that the national economy was heading towards recession, with one suspected indicator being increasingly quiet markets.

However, according to Purbaya, various economic indicators demonstrate that the national economy is in good condition.

“It turned out to be true — consumer spending is still there, people are still shopping, and the market remains bustling. When I visited, suddenly many people gathered. This means that around us there are still many people shopping,” he said.

Consequently, he expressed optimism that Indonesia’s economy is far removed from the potential for recession.

“This means that consumer purchasing power appears to be improving and we are not in recession, much less crisis. We are far from crisis. Our economy is performing well,” he added.

He also assured that he would implement policies to mitigate the impact of surging oil prices should prices move beyond the capacity of the State Budget (APBN).

Regarding rising oil prices, Purbaya allowed one month to evaluate the potential for APBN adjustment.

So far, Purbaya believes that the average oil price development remains below the maximum capacity of the APBN.

“Do not rush to conclude that prices will remain at 100 US dollars. We will conduct assessments from time to time. The calculation changes constantly according to circumstances. Right now the average is not 100 US dollars. It is still below that, so let us remain calm,” explained the Finance Minister.