Jakarta. Finance Minister Purbaya Yudhi Sadewa revealed on Tuesday that the Indonesian government has declined loan offers from the International Monetary Fund (IMF) and the World Bank Group.
During the recent Spring Meetings in the United States, the IMF offered a credit facility ranging between $25 billion and $35 billion, the minister said. However, Purbaya said the government opted to bypass the offer, citing a substantial budget surplus carried over from the previous fiscal year.
“We do not currently require these funds because I have a reserve of approximately $27 billion for our own needs; our fiscal condition remains secure,” Purbaya said in Jakarta.
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The minister noted that the rejection appeared to be met with frustration by IMF representatives, suggesting that the “inability to disburse loans impacts the institutions’ interest income.” While confirming that the World Bank had also extended an offer, Purbaya did not disclose the specific valuation of that proposal.
Fiscal Buffers and Market Volatility
Despite global economic realities diverging from initial projections by the government and the House of Representatives (DPR), Indonesia maintains sufficient “buffers” to mitigate external shocks.
While the 2026 State Budget was drafted with a baseline assumption of $70 per barrel for global oil prices, Purbaya said, the government has established contingency reserves to manage the impact of prices surging toward $100 per barrel, as seen in current market trends.
“Under any circumstances, we must utilize our existing resources as our most optimal tools,” Purbaya said.
He added that the government stays firm with the commitment to maintaining the national budget deficit below the statutory ceiling of 3% of Gross Domestic Product (GDP).
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