Video: Purbaya Says State Budget Strong Enough to Bear Energy Subsidies Amid War

Indonesian Finance Minister Purbaya Yudhi Sadewa has reported on the country’s economic developments and fiscal management up to May 2026. Purbaya noted that the state budget deficit reached 0.70% of Gross Domestic Product, or Rp 180.4 trillion, a position underpinned by successful efforts to boost tax revenue, which grew 22.1% year-on-year following tax reforms and the reorganisation of tax officials. In line with first-quarter 2026 economic growth of 5.61% year-on-year, Purbaya stated that Indonesia’s sources of economic growth are performing well, including through flagship government programmes such as the Free Nutritious Meals initiative and the private sector, which has been successfully stimulated by the Prabowo administration. Furthermore, public purchasing power is confirmed to be healthy, reflected in consumption data and automotive sales, indicating that the Indonesian economy is still expanding and far from any impression of heading towards a crisis like that of 1998. Government stimulus measures, such as the 13th-month salary for civil servants and pensioners, have also successfully supported the economy. Regarding cases of under-invoicing and incorrect tax reporting in exports of Indonesia’s leading commodities, the government, through the Ministry of Finance, has conducted investigations, and the establishment of a Special Export State-Owned Enterprise will address this issue. The government has also assured that the state budget remains sufficiently strong to tackle the impact of global geopolitical dynamics on energy prices and to sustain energy subsidies for both fuel and LPG.