Finance Minister Purbaya Yudhi Sadewa has reaffirmed Indonesia’s commitment to keeping its fiscal discipline intact. Despite global economic pressure and major economies like those in Europe and the United States already exceeding their fiscal deficit limits, he assured that Indonesia will not breach its 3% budget deficit cap this year or next. His statement has brought reassurance to investors who have been closely watching the country’s financial management.
Speaking before government bondholders—including representatives from banks and securities firms—at an Investor Meeting held at the Directorate General of Taxes on Monday (October 13, 2025), Purbaya shared his vision for maintaining a prudent fiscal stance.
“They wanted to know how I plan to manage the economy going forward, whether I’ll be reckless or not,” he said. “So I told them, I won’t recklessly exceed the 3% of GDP limit for the deficit.”
He explained that even though other nations have eased their fiscal restrictions, Indonesia will continue to follow stricter standards. “The European and American standards have already been breached. They’ve shifted their limits. But I’ll still follow their strictest rule,” he stated.
According to Purbaya, raising the deficit limit is not part of Indonesia’s short-term agenda. Such a policy would only be considered once the country’s economy demonstrates stronger and more consistent growth. “When our economy grows faster, then we can review whether such a policy is necessary,” he explained.
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He also emphasized that the government’s current financial maneuvers do not reflect any fiscal expansion. The recent move involving Rp200 trillion in state funds was merely a reallocation, not additional spending. “They saw signs of fiscal expansion. I told them, I haven’t done any expansion yet. The Rp200 trillion was just my funds at Bank Indonesia that I moved around. The rest hasn’t been opened or expanded yet. This is just cash management,” Purbaya clarified.
Furthermore, he highlighted that the placement of the excess budget balance (SAL) will not affect the overall deficit. His reassurance underscored the ministry’s commitment to maintaining fiscal discipline while still ensuring liquidity and flexibility within state finances.
By adhering to the 3% deficit ceiling, the Finance Ministry aims to uphold investor confidence, ensure economic stability, and reinforce Indonesia’s image as a country capable of managing its economy responsibly in a volatile global landscape.
