Finance Minister Purbaya Commits to Keep Fiscal Deficit at 3% After Meeting with Prabowo
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JAKARTA, Investortrust.id — Finance Minister Purbaya Yudhi Sadewa has committed to keeping Indonesia’s fiscal deficit capped at 3% after a closed-door meeting with President Prabowo Subianto at the Presidential Palace in Jakarta on Tuesday, Sept 9, 2025. He said the government will accelerate the implementation of existing development programs to ensure faster economic growth.
“The current policies have not been carried out smoothly. Today’s meeting decided to accelerate everything. That is the priority. With that, the economy should grow faster,” Purbaya told reporters after the meeting.
Purbaya emphasized that the government would adhere to the fiscal deficit ceiling mandated by law, set at a maximum of 3% of gross domestic product. “We will follow the law. This is not just my decision, it is the government’s collective decision. We will abide by the existing legislation,” he said.
The minister dismissed concerns that a widening state budget deficit would automatically fuel inflation. With economic growth projected at 6.5% to 6.7%, he argued that Indonesia remains within a safe threshold. “It is not automatic that the budget deficit leads to inflation or that spending causes inflation. We must look at other factors, such as the economy’s capacity to generate growth,” Purbaya said.
On stimulus measures, he explained that the government is preparing to accelerate the rollout of development programs already in place, with a particular focus on creating jobs. “The key is how quickly we can revive the economy so that more jobs are created. That is what we will pursue moving forward,” he said.
Purbaya also stressed the importance of close coordination between fiscal and monetary policy. He noted that discussions with Bank Indonesia were ongoing to ensure that fiscal measures do not disrupt liquidity in the banking system.
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