Sri Mulyani Affirms That Indonesia Is Free To Be Active In The Midst Of Geopolitical Escalation

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati emphasized that Indonesia carries the principle of being free to be active, both politically and economically, amid the current escalation of geopolitical conflicts.

"I convey that Indonesia carries the principle of being free to be active both in the political and economic context," Sri Mulyani said on Instagram @smindrawati quoted by ANTARA, Wednesday, June 25.

He made this statement during an interview in the middle of the Asian Infrastructure Investment Bank (AIIB) Annual Meeting.

He discussed the geopolitical situation and its impact on the economy, the Fed's policy, and the State Revenue and Expenditure Budget (APBN) conditions.

Sri Mulyani stated that the state budget is well maintained amidst the current global uncertainty. The state budget deficit is maintained according to the track (on-track) with a final record of IDR 21 trillion or 0.09 percent of gross domestic product (GDP) in May 2025.

Overall, both in terms of revenue, spending, and financing, it is also maintained with a countercyclical policy to deal with geopolitical turmoil that occurs.

For the record, the realization of state revenues was recorded at Rp995.3 trillion, state expenditures of Rp1,016.3 trillion, and budget financing of Rp324.8 trillion.

Sri Mulyani also invited various countries to cooperate with Indonesia in dealing with the current global economic situation.

"Indonesia is open to working with various countries for the sake of prosperity and common interests," he said.

As previously reported, Sri Mulyani discussed the impact of the conflict between Iran and Israel with Saudi Finance Minister Arabia Muhammad Al Jadaan and Qatar Finance Minister Ali Alkuwari on the sidelines of the AIIB meeting.

According to Sri Mulyani, all parties hope that the tension of conflict in the Middle East can subside soon.

All parties also hope to reach a peace agreement for the benefit of all mankind.

Meanwhile, on a separate occasion, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said he would hold a meeting with PT Pertamina (Persero) to discuss the impact of the Iran and Israel conflict on Indonesia's energy security, especially oil prices.

Bahlil said that the dynamics of the Middle East increasingly shows that Indonesia must increase oil and gas lifting in the country. This aims to maintain energy resilience in the midst of geopolitical turmoil.