Indonesia to Maintain Responsive Fiscal Policy, Bolster Market Confidence

Indonesia's government is committed to navigating global economic volatility through a robust and responsive fiscal policy, according to Finance Minister Purbaya Yudhi Sadewa. Speaking at a working meeting with the House of Representatives' Commission XI, Sadewa outlined a comprehensive strategy designed to stabilize the financial sector, bolster market confidence, and encourage capital flow back to fundamental values.

The minister emphasized the dynamic nature of the global economy, stating that Indonesia's fiscal policy will remain anticipatory. This includes maintaining the stability of subsidized fuel and food prices, ensuring adequate energy supply and rice stocks, and upholding fiscal discipline by keeping the budget deficit below 3% of GDP. Efforts to optimize revenue through natural resources and regulate export earnings are also key components.

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We realize that the global economy is still very dynamic.

To further support economic resilience, the government plans to implement stimulus packages aimed at sustaining public purchasing power and business continuity. These include transportation ticket discounts, food assistance, housing incentives, and vocational programs. A crucial aspect of the strategy involves improving spending absorption patterns to be quicker and more even, shifting from a slow-low to a quick-high model to better stimulate economic growth.

Furthermore, Sadewa highlighted the importance of strengthening synergy between fiscal and monetary policies. This coordinated approach is intended to maintain stability and drive economic growth, providing a strong foundation for facing economic dynamics in 2027. The minister expressed confidence in Indonesia's domestic economic fundamentals, bolstered by increasingly solid policies, to weather future uncertainties.

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We realize that the global economy is still very dynamic.