#Economic Policy
House pushes for more efficient management of state-owned firms offering public service obligations
The House of Representatives (DPR) has asked the government to improve the efficiency and effectiveness of state-owned enterprises (SOEs) tasked with managing public service obligations (PSO), emphasizing that massive state subsidies must translate into real benefits for the public.
Prabowo-Gibran’s first year sparks economic optimism: Finance Minister
Minister of Finance Purbaya Yudhi Sadewa said Indonesia’s economy has entered a period of renewed optimism under the first year of the Prabowo Subianto–Gibran Rakabuming Raka administration, driven by strong fundamentals, stable macroeconomic conditions, and improving public welfare.
Purbaya to tighten crackdown on illegal used clothing imports
Minister of Finance Purbaya Yudhi Sadewa has announced plans to impose stricter measures to combat illegal importation of used clothing, signaling a firmer government stance to protect domestic textile industry and small businesses.
Prabowo claims economic stability, record investments, falling poverty
President Prabowo Subianto struck the right note on Indonesia’s strong economic performance amid global uncertainty during the Cabinet Plenary Meeting at the State Palace in Jakarta on Monday, October 20, 2025.
Finance Minister calls for full utilization of free nutritious meal budget
Minister of Finance, Purbaya Yudhi Sadewa, has emphasized that the government will continue to push for the full utilization of the Free Nutritious Meal (MBG) budget, warning that unspent funds could burden state finances.
Economist warns on Rp200 T bank placement, Purbaya defends policy
Paramadina University Rector Didik J. Rachbini has warned that the government’s decision to place Rp200 trillion (US$12 billion) of state funds in commercial banks could potentially violate constitutional and statutory provisions.
Finance Minister to redirect state funds from BI to lenders starting September 12
Minister of Finance Purbaya Yudhi Sadewa has announced that idle state funds, held at the Indonesian Central Bank (BI), will be placed into the banking system beginning Friday, September 12, 2025 and allocated to state-owned lenders under the Himbara group of State banks as well as Islamic banks.
Government-BI agree on burden-sharing to fund housing, village cooperatives
The government and the Indonesian Central Bank (BI) have agreed on a new burden-sharing mechanism to support priority programs under President Prabowo Subianto’s Asta Cita agenda, in particular the Public Housing Program and the Red-and-White Village Cooperatives initiative.
Sri Mulyani rules out new taxes in 2026 despite revenue target increase
Minister of Finance, Sri Mulyani Indrawati, has assured the public that the government will not introduce new taxes in 2026, even as state revenue is projected to rise by 9.8 percent.
“Economic pressures, political missteps and security rivalry” drive Indonesia's unrest
A wave of protests across Indonesia stems from economic hardship, political misjudgments, and unresolved tensions between the country’s security institutions, with multiple actors exploiting the situation, says political analyst at the Institute for Policy Studies (IPS) Tarli Nugroho.
Prabowo’s 2026 State Budget: Optimism amid global economic challenges
President Prabowo Subianto’s administration has presented the 2026 State Budget (RAPBN), targeting a growth rate of 5.2–5.8 percent and aiming to keep the fiscal deficit at 2.53 percent of GDP.