JAKARTA - Finance Minister Purbaya Yudhi Sadewa estimates that with policy changes, the economic conditions can be reversed, but in practice, the recovery process does not go as smoothly as imagined.
He explained that in the period from August to September 2025, the economic condition had weakened quite sharply and the situation was considered potentially having social and political impacts if it was not immediately responded to, considering that the economic pressure felt by the community could trigger social unrest.
"We know that if it is not reversed, social and political stability will be hampered. The demonstration is not a demo just because it is a demo. The demonstration is because it reflects that you are a difficult media, the community is difficult, so if that is the case, later the community will have difficulty finding food," he said. in the 2026 early year spirit event, Wednesday, January 14.
According to Purbaya, the government has various survey instruments to monitor the economic and social conditions of the community.
He explained that based on the results of the monitoring, the reversal of the policy was considered necessary and proved to be able to improve the economic condition, although not as fast as the initial estimate.
Purbaya assessed that the economic slowdown occurred because liquidity in the economic system did not flow optimally, even though banks had funds, the money was not fully channeled into the real sector.
According to him, this condition encourages the government to take fiscal policy measures to accelerate the circulation of money in the economy.
"When I took the first step, that's why you're having trouble, because the economy is slow, because the economy is strangled. Some say it's not, but if I look at the money in the system, it's dry, not in the banks have money, but the money is not in the economy, it's put there," he said.
However, Purbaya admitted that there were adjustments and tightening on the other policy side, especially monetary policy.
"I think it's fast, the first few weeks of the road, because it's just recently back. But after that, yes, there are a few brakes there," he explained.
Therefore, Purbaya said that intensive coordination with Bank Indonesia continues to be carried out to align fiscal and monetary policies.
"It is true that we must continue to discuss with the Indonesian monetary policymakers. Bank Indonesia. Maybe they have different views, maybe their knowledge is different, maybe it's not synchronized. So it's a little delayed," he said.
He said that in the fourth quarter of 2025, economic growth was not as strong as expected because there were still policy adjustments and with more intensive coordination with the central bank, it began to show a meeting point.
"But we are discussing again with the Central Bank, now we have found the middle point. How to improve this system well, with fiscal, monetary, more synchronous in the future," he explained.
In the future, Purbaya is optimistic that with the increasing synchronization of fiscal and monetary policies, the performance of the national economy will improve.
He hopes that by 2026, economic growth can move closer to 6 percent, with signs of improvement beginning to be seen since the first quarter of 2026.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
