Finance Minister Purbaya Yudhi Sadewa Tackles Inflation, Trade Deficit and Governance Reforms

Finance Minister Purbaya Yudhi Sadewa outlined a series of measures to address Indonesia’s fiscal and economic challenges. He pledged to implement the 11 recommendations of the Audit Board (BPK) concerning the 2025 Central Government Financial Statements, aiming to improve performance reporting, data integration and fuel subsidy calculations.

Purbaya explained that June 2026 inflation rose to 3.34 % year‑on‑year, driven by seasonal spikes in fuel and food prices, but core inflation remained at a moderate 2.76 % and he expects pressure to ease as global oil prices fall.

He also clarified that the country recorded a trade deficit of US$1.61 billion in May 2026, the first after 72 months of surplus, mainly due to higher oil‑gas imports, while cumulative January‑May trade still showed a US$4.03 billion surplus supported by strong non‑oil exports.

In a separate ceremony, Purbaya appointed three new senior officials – Sudarto as Director‑General of Budget, Evita Mantovani as Director‑General of State Assets, and Herman Saheruddin as Director‑General of Financial Stability and Sector Development – emphasizing the handover of state and presidential trust.

He also reported that the state’s fiscal buffer (SAL) stood at Rp438.26 trillion at the end of 2025, describing it as adequate to support the 2025 budget and maintain liquidity in the banking system.