Minister Purbaya: Indonesia Economy Slowed After Appointment

Finance Minister Purbaya Yudhi Sadewa told the 100 Indonesian Economists Forum in Jakarta on 30 October 2025 that Indonesia’s economy has slowed since his appointment to lead the Ministry of Finance. The comment was made during a gathering of over one hundred national economists.

He attributed the slowdown to misaligned fiscal and monetary policies over the past twelve to eighteen months, including tax hikes amid reduced financial system liquidity. He described those measures as pro‑cyclical, which he believes have deepened the economic contraction.

Purbaya highlighted the need for counter‑cyclical actions—relieving fiscal pressure when growth falls and providing stimulus when needed. As an initial step, he redirected roughly IDR 200 trillion of surplus funds from Bank Indonesia to commercial banks to boost money circulation without imposing additional fiscal burdens.