Zhulfakar, Jakarta – Finance Minister Purbaya Yudhi Sadewa has pushed back against criticism from British magazine The Economist over the fiscal direction of President Prabowo Subianto's administration, arguing that the country's economic fundamentals remain strong and fiscally disciplined.

Finance Minister Purbaya Yudhi Sadewa said Indonesia's budget deficit and debt levels were still well within manageable limits and compared favorably with many advanced economies. Last year's deficit equaled 2.92% of GDP, remaining within Indonesia's 3% fiscal cap,

"Our fiscal deficit remains under control below 3% of GDP. So there is no problem," Purbaya told reporters at Halim Perdanakusuma Air Force Base on Monday.

His remarks were a response to a recent report by The Economist titled "Indonesia, the Biggest Muslim-Majority Country, Is on a Risky Path," which questioned whether Prabowo's flagship programs – including the nationwide free nutritious meals (MBG) initiative and the establishment of village cooperatives (KMP) – could place additional strain on Indonesia's fiscal space.

The magazine said the government may eventually face difficult choices between maintaining strategic programs, reducing subsidies, or widening the budget deficit.

Purbaya rejected the assessment as disproportionate, arguing that Indonesia's fiscal indicators remain healthier than many developed economies, particularly in Europe.

"If The Economist sees our fiscal policy as chaotic, then look at countries in Europe. What are their deficits and debt levels? Many are approaching 100% of GDP," he said.

Indonesia's debt-to-GDP ratio currently stands at around 40%, significantly lower than many advanced economies, according to Purbaya.

"We are still in good shape. The Economist should be praising us," he added.

The government has repeatedly defended its fiscal position amid concerns over the cost of Prabowo's policy agenda, insisting that Indonesia still has sufficient fiscal room to manage spending while maintaining economic stability during a period of global uncertainty.

Source: https://jakartaglobe.id/business/finance-minister-defends-prabowo-policies-after-the-economist-repor