Indonesia’s New Finance Minister to Review 2026 Budget and Inject Funds into Economy
- brg_news_room
- Sep 11
- 1 min read
Indonesia: Indonesia’s newly appointed Finance Minister, Purbaya Yudhi Sadewa, has announced plans to review the draft 2026 budget and reassess the fiscal deficit target to align with President Prabowo Subianto’s economic growth agenda. The minister said the review would aim to increase allocations for regional governments, reversing earlier plans to reduce transfers. Purbaya stated that the fiscal deficit target “may be changed” depending on future conditions. His comments came shortly after proposing a liquidity injection of about IDR 192 trillion (USD 12 billion / EUR 11 billion) into state-owned banks to stimulate lending and boost economic activity.
The finance ministry intends to transfer roughly half of its IDR 400 trillion (USD 25 billion / EUR 23 billion) in reserves held at the central bank to banks, directing them to increase lending rather than purchasing government debt. Purbaya said the move aims to ease liquidity constraints and raise growth above the current 5 per cent rate.
Source: Bloomberg
