Realization Of State Expenditures Slow, Minister Of Finance Purbaya: I'm A Fiscal Expert

JAKARTA - The newly appointed Minister of Finance, Purbaya Yudhi Sadive, highlighted the slow realization of state spending as one of the main challenges that will be handled.

Purbaya emphasized its commitment to accelerate the realization of spending in order to encourage more significant economic growth.

He highlighted the importance of maintaining fiscal health and reminded that maintaining fiscal health should not hinder state spending, which is really needed to maintain economic growth.

"I made the fiscal healthy, but if the economy doesn't work, the economy doesn't work, it will collapse later in the economy. So the fiscal is healthy, but we make sure it doesn't interfere with the financial system and the spending can be optimal. This is now a bit slow, right? "said Purbaya at a press conference at the Ministry of Finance, Monday, September 8.

According to him, in the last two quarters, the growth in government spending which he currently considers is still a bit slow.

As is known, the realization of state spending until the first semester of 2025 has only reached Rp1,406 trillion or 38.8 percent of the budget ceiling of Rp3,621.3 trillion.

Not only that, the government's contribution to economic growth was also recorded negative, with a contraction of 0.08 percent in the first quarter and 0.02 percent in the second quarter.

He could not confirm whether the condition was caused by budget efficiency or other factors.

But what is certain is that the slowdown in spending has a direct impact on the pace of the national economy.

"I don't know where it hurts, what efficiency is not, but what is clear is that it has a negative impact on the economy because its growth is slow from there. I am a fiscal expert, so I understand very well what productive fiscal is like," he said.

Purbaya juga menuturkan dirinya telah menerima arahan dari Presiden Prabowo untuk membalik arah ekonomi dan mempercepat pertumbuhan.

Karena itu, ia akan segera mengevaluasi kondisi keuangan negara dan mengidentifikasi instrumen-instrumen yang masih bisa dioptimalkan.

"Itu yang akan kita kerjakan ke depan, saya akan melihat di keuangan ada apa, instrumen apa yang masih bisa kita optimalkan, disitu akan kita maksimalkan supaya ekonominya jalan lebih cepat," pungkasnya.

Purbaya also said that he had received directions from President Prabowo to reverse the direction of the economy and accelerate growth.

Therefore, he will immediately evaluate the state's financial condition and identify instruments that can still be optimized.

"That's what we will do in the future, I will see in finance what is wrong, what instruments we can still optimize, there we will maximize so that the economy can run faster," he concluded.