Indonesia’s Ministry of Finance published remarks by Deputy Finance Minister Juda Agung in a keynote speech at Fitch Ratings’ “Fitch on Indonesia”, where he described the economy as stable despite rising geopolitical tensions and global inflation pressures. He cited 5.39% growth in the latest quarter and linked the performance to coordinated fiscal, monetary, financial-sector and real-economy policies, alongside low inflation, prudent fiscal management and solid external buffers relative to BBB-rated peers. The speech flagged higher oil prices linked to Middle East conflict as a source of tighter fiscal space, particularly for food and energy. Measures described included improving the efficiency of state spending, optimizing flagship programmes including the free nutritious meal programme, and maintaining targeted energy subsidies to protect household purchasing power. On revenues, the Deputy Minister pointed to 20% growth in tax receipts in the first three months of 2026 and highlighted efforts to secure revenues through a core tax system digitalisation programme, optimisation of natural resource revenues and improved management of tax-free funds. He also set out a longer-term policy focus on structural reforms aimed at productivity and investment, with priorities including food and energy security, education and health, downstreaming of natural resources and poverty reduction, while keeping fiscal policy adaptive to global developments and supportive of investor confidence.

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