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View all search resultsPurbaya focusing on ‘peripheral measures’ over core issues: CSIS
Core fiscal and structural challenges, including high bond yields and legal and political uncertainty, continue to be a concern for the country, despite Finance Ministry optimism, according to CSIS.
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Finance Minister Purbaya Yudhi Sadewa addresses questions on Sept. 19, 2025, by reporters at the State Palace, Central Jakarta. (BPMI Setpres/Kris)
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inance Minister Purbaya Yudhi Sadewa has spent much of his time in office generating optimism but has yet to confront the country’s core fiscal and structural challenges, the Centre for Strategic and International Studies (CSIS) has said, warning of stability risks.
“What Purbaya has done so far is still outside the main problem. His [measures] are still on the periphery, still piecemeal,” CSIS economic researcher Deni Friawan told a press briefing on Wednesday.
One of the first thing Purbaya did since taking up the portfolio in September 2025 was to move Rp 200 trillion (US$11.9 billion) of government cash deposited at Bank Indonesia (BI) to government accounts in state-owned lenders in hopes of spurring credit growth, and adding another Rp 76 trillion in November.
Then, in December, the government withdrew Rp 75 trillion of those funds from the banks to cover fiscal spending needs, leaving only Rp 201 trillion in the banking system.
Read also: Purbaya pulls $4.8b liquidity injection from banks to fuel govt spending
Deni said the policy missed its mark, arguing that “weak demand and market uncertainty, not a lack of liquidity,” were the real constraints.
“Pumping funds into the market risks fueling speculation in stocks or bonds, which is why some of it is then being redirected to government spending,” he added.
