Indonesia's Finance Minister: Easing US-Iran Conflict Could Boost State Budget

Indonesia's Finance Minister Purbaya Yudhi Sadewa sees potential for additional room in the state budget following the easing of tensions between the United States and Iran. He suggested that a reduction in geopolitical conflict could lead to more stable global energy prices.

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Well, it should be like that, right?

"Well, it should be like that, right?" Purbaya remarked, even performing a small dance before answering questions about the impact of these developments. He explained that the government had set aside a portion of the budget to cover potential increases in subsidies, which are often triggered by fluctuations in global energy prices.

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We had already set aside some of the budget for subsidies. So it will be much less, there is room to provide funding for other programs considered important by the president.

"We had already set aside some of the budget for subsidies. So it will be much less, there is room to provide funding for other programs considered important by the president," Purbaya stated. However, he emphasized that the government would continue to monitor global developments closely before making any further adjustments to fiscal policy.

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Later we will see what happens and then we will adjust.

In related news, Purbaya also revealed plans to travel to China to meet with investors and discuss the issuance of panda bonds, though he did not disclose the target amount. He also highlighted ongoing bureaucratic reforms within the Ministry of Finance aimed at improving inter-unit coordination, particularly between the tax and customs directorates, to enhance efficiency and effectiveness.

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So there were many silos before, now we are opening those silos so the directorates work faster. For example, cooperation between tax and customs was very difficult before, now it can be resolved.