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Purbaya defends economic outlook, denies ‘over-optimism’

Jakarta (ANTARA) – Finance Minister Purbaya Yudhi Sadewa on Friday defended his optimistic outlook on Indonesia's economic trajectory, stating that his projections are rooted in “measured calculations” rather than blind optimism.”This is not over-optimism; it is a calculated move,” Purbaya said in a statement. “We calculate our steps, we see the impact, and we think it will indeed go that [positive] way.”The minister noted that Southeast Asia's largest economy maintained strong momentum with 5.61 percent growth in the first quarter of 2026, driven by robust household consumption, private investment, and accelerating government spending.”Now, both of our economic engines are starting to move—the government and the private sector,” he added.Purbaya emphasized that the state budget will continue to be managed prudently to sustain growth while safeguarding fiscal health. As of April 30, 2026, the state budget deficit was tightly controlled at 0.64 percent of GDP, or Rp164.4 trillion (US$9.29 billion).”The deficit has not increased, but our economic growth is faster than planned. This allows us to manage the budget more efficiently and ensure a more vibrant private sector,” Purbaya explained.To further capital inflows, the government is leaning into cross-ministry coordination to improve the domestic investment climate. A dedicated task force has also been established to fast-track the resolution of regulatory and bureaucratic bottlenecks for investors.Purbaya pointed to strong global investor confidence as proof of Indonesia's stability, noting that recent global bond issuances received robust demand despite ongoing volatility in international financial markets.According to the minister, sustained investor appetite for Indonesian debt securities underscores international market confidence in Jakarta's fiscal credibility and macroeconomic outlook. Moving forward, he pledged continued synergy between fiscal, monetary, and financial policies to foster sustainable growth.