Summary of "[FULL] Menkeu Purbaya Blak-blakan Bicara Ekonomi di Closing Remarks Satu tahun Prabowo-Gibran"
Closing Remarks by Indonesia’s Minister of Finance, Purbaya Yudi Sadewa
The video features the closing remarks of Indonesia’s Minister of Finance, Purbaya Yudi Sadewa, reflecting on the first year of the Prabowo-Gibran administration’s economic policies and outlook. Purbaya delivers a candid and optimistic analysis of the country’s economic performance, challenges, and future strategies.
Key Points
Economic Growth and Optimism
- Indonesia’s economy grew by 5.12% in the second quarter, with expectations to reach above 5.5% by the fourth quarter.
- The minister aims for faster growth, ideally approaching 6% next year, though 8% remains a long-term aspiration.
- Despite global uncertainties, Indonesia’s trade balance grew significantly (45.8% from January to September year-on-year), showing resilience.
- Inflation is maintained at a low 2.5%, and the state budget deficit remains low at 1.56% of GDP, among the lowest in the G20.
Economic Challenges and Risks
- Past mismanagement slowed growth and increased social unrest, with protests linked to economic pressures rather than political chaos.
- There is concern about idle funds in both central and regional governments, with large cash reserves not being optimally used to stimulate growth.
- The manufacturing sector’s decline and overreliance on low-value-added services hinder sustainable industrialization and economic transformation.
Policy Measures and Strategies
- The government injected liquidity (around IDR 200 trillion) into the banking system to boost credit growth and economic activity.
- Efforts are underway to improve tax collection and customs enforcement, targeting smuggling and increasing the tax-to-GDP ratio.
- The minister emphasizes the importance of MSMEs (micro, small, and medium enterprises) for economic growth, citing South Korea’s model of strong institutional support for MSMEs as a benchmark.
- Structural reforms include creating a task force to address investment bottlenecks and regulatory hurdles, with weekly case reviews to improve the business climate.
- Fiscal prudence is maintained with a commitment not to exceed a 3% GDP deficit, though this may be revisited if growth accelerates.
- The state budget will be more efficient, with adjustments to regional funding to ensure timely and effective spending.
Long-term Vision
- The minister stresses the need for aggressive, sustained growth to catch up with developed countries, pointing to East Asian success stories.
- Economic transformation should focus on moving from agriculture to manufacturing and higher-value industries while supporting productive agrarian sectors.
- The government aims to build a solid foundation for continuous expansion over the next decade, expecting the stock market and private sector to play key roles.
Transparency and Accountability
Purbaya openly addresses criticisms and political attacks, emphasizing his commitment to transparency and results. He highlights ongoing efforts to combat corruption and smuggling, especially in sectors like cigarettes, textiles, and steel. The minister portrays himself as pragmatic and hands-on, personally overseeing investment issues and economic policy implementation.
Conclusion
Minister Purbaya presents a balanced yet hopeful view of Indonesia’s economic trajectory under the Prabowo-Gibran administration. While acknowledging current challenges and the need for cautious fiscal management, he projects confidence in achieving higher growth through structural reforms, improved investment climate, and strengthened MSME support. The overall message is one of cautious optimism backed by experience and strategic planning.
Presenters / Contributors
- Purbaya Yudi Sadewa — Minister of Finance of the Republic of Indonesia
- Muhammad Mirdal Aqib — CEO of Media Group (mentioned)
- Arif Suditomo — President Director of Metro TV (mentioned)
- Mr. Leo — Metro TV contributor (referenced in dialogue)
Category
News and Commentary
