{"id":307109,"date":"2025-11-25T06:08:11","date_gmt":"2025-11-25T06:08:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/307109\/"},"modified":"2025-11-25T06:08:11","modified_gmt":"2025-11-25T06:08:11","slug":"brash-but-popular-indonesias-new-finance-minister-purbaya-wins-public-praise-but-worries-investors","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/307109\/","title":{"rendered":"Brash but popular: Indonesia\u2019s new finance minister Purbaya wins public praise but worries investors"},"content":{"rendered":"<p>Thomas was referring to programmes like the free-meal initiative, whose 171 trillion rupiah (US$10.2 billion) budget is expected to double next year.\u00a0<\/p>\n<p>Prabowo\u2019s administration is also working to set up <a href=\"https:\/\/www.channelnewsasia.com\/asia\/indonesia-cooperative-rural-communities-financial-risks-5257691\" rel=\"nofollow noopener\" target=\"_blank\">more than 80,000 village cooperatives<\/a>, provide free health checks to millions of Indonesians as well as build millions of affordable housing units for low-income families. These programmes are expected to cost Indonesian taxpayers billions of dollars every year.<\/p>\n<p>The impact of Purbaya\u2019s policies will be clearer in February when the Indonesian statistics bureau reveals its economic growth report for the final quarter of 2025.\u00a0<\/p>\n<p>DELIVERING ON THE PRESIDENT\u2019S PLEDGE<\/p>\n<p>In his inaugural State of the Nation address in August, Prabowo said his administration would work to narrow Indonesia\u2019s budget deficit by boosting state revenue and cracking down on what he called adherents of <a href=\"https:\/\/www.channelnewsasia.com\/asia\/indonesia-prabowo-corruption-greednomics-first-state-union-address-5294321\" rel=\"nofollow noopener\" target=\"_blank\">\u201cgreednomics\u201d<\/a>: Corrupt officials, illegal miners and tax evaders.<\/p>\n<p>The president said once these so-called \u201crevenue leakages\u201d are plugged, Indonesia\u2019s budget could swing into surplus by 2027 or 2028.<\/p>\n<p>As finance minister, Purbaya has vowed to follow through on that pledge. He said his ministry is pursuing a list of the 200 biggest tax evaders who, together, owe the state about 60 trillion rupiah (US$3.7 billion).<\/p>\n<p>\u201cSo far, 8 trillion rupiah has been collected. Some have agreed to pay in installments, and others we\u2019re still chasing. They\u2019d better not be playing games with us,\u201d Purbaya said on Nov 14, as quoted by Kompas.<\/p>\n<p>He also plans to clamp down on the smuggling of second-hand clothes from overseas, which he says threatens domestic manufacturers.<\/p>\n<p>But experts remain sceptical, noting that similar pledges have been made before.<\/p>\n<p>\u201cWhenever there\u2019s a scandal, there\u2019s always a promise of reform. A few things get fixed, a few procedures are tightened \u2014 then slowly, everything returns to normal,\u201d said Achmad Nur Hidayat, an economist at the National Development University Jakarta.<\/p>\n<p>Achmad said Purbaya must close loopholes that enable such abuses and punish officials who aid tax evaders and smugglers.<\/p>\n<p>Meanwhile, Purbaya\u2019s decision to redirect part of the government\u2019s surplus to <a href=\"https:\/\/www.channelnewsasia.com\/business\/indonesia-may-shift-government-funds-regional-banks-boost-growth-5387896\" rel=\"nofollow noopener\" target=\"_blank\">inject capital into several state-owned banks<\/a> has yet to produce results.<\/p>\n<p>According to Bank Indonesia, credit growth in October stood at 7.36 per cent, down from 7.70 per cent in September.<\/p>\n<p>But Purbaya appears undeterred.<\/p>\n<p>\u201cWe won\u2019t (review it),\u201d he told reporters on Nov 20 when asked if his office was reconsidering the policy. \u201cIn fact, I\u2019ll add more money (to the banks).\u201d<\/p>\n<p>Such remarks worry analysts.<\/p>\n<p>\u201cCredit growth is slowing because consumers are postponing big purchases and businesses are holding back expansion amid economic uncertainty, not because banks lack capital,\u201d said Yusuf of CORE.<\/p>\n<p>Experts say Purbaya must rely more on data and evidence before making bold fiscal moves, be willing to listen to criticism and adjust the course if his policies prove counterproductive.<\/p>\n<p>\u201cAt the end of the day, a good finance minister isn\u2019t judged by popularity in surveys,\u201d said Bhima. \u201cIt\u2019s about how well he delivers on promises of reform and economic growth.\u201d<\/p>\n<p>Editor&#8217;s note: The article previously wrongly stated Achmad Nur Hidayat as being from Syarif Hidayatullah Islamic University. He is from the National Development University Jakarta. We are sorry for the error.<\/p>\n","protected":false},"excerpt":{"rendered":"Thomas was referring to programmes like the free-meal initiative, whose 171 trillion rupiah (US$10.2 billion) budget is expected&hellip;\n","protected":false},"author":2,"featured_media":307110,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164,4805,174763,49944],"class_list":{"0":"post-307109","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-economy","12":"tag-indonesia","13":"tag-indonesian-economy","14":"tag-prabowo-subianto"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/307109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=307109"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/307109\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/307110"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=307109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=307109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=307109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}