Gotrade News - Indonesia's Finance Minister Purbaya Yudhi Sadewa received a positive reception from 18 major US investors including Goldman Sachs and Fidelity Investments. Investors appreciated Indonesia's strategy of pursuing growth without sacrificing fiscal discipline.
Key Takeaways
- Purbaya met 18 major US investors and convinced them of Indonesia's credible fiscal strategy
- The IMF called Indonesia one of the "lights" for the global economy with deficit below 3% of GDP
- Bank Indonesia confirmed that global investors appreciate the country's consistent macroeconomic policies
Investors initially questioned how Indonesia could achieve rapid growth while keeping fiscal numbers under control. Purbaya outlined a comprehensive fiscal policy strategy during meetings in New York and Washington DC.
"We explained it clearly so they could accept that Indonesia is creating growth without sacrificing fiscal prudence," Purbaya told Kompas on Wednesday (Apr 15). The confusion among global investors stemmed from Indonesia's approach differing from most other countries.
IMF Calls Indonesia a "Light" for Global Economy
IMF Managing Director Kristalina Georgieva described Indonesia as one of the "lights" for the global economy. This assessment is based on Indonesia's ability to maintain macroeconomic stability with its deficit kept below 3% of GDP.
Purbaya emphasized that Indonesia does not need special IMF support given its relatively strong fiscal position. "The IMF has facilities for countries that need help and Indonesia is not among them because our condition is quite good," he said.
Bank Indonesia Confirms Global Appreciation
Bank Indonesia Communications Director Anton Pitono stated that the IMF and global investors appreciate Indonesia's consistency. "The synergy of solid fiscal and monetary policies is key to investor confidence," he told Liputan6.
Purbaya added that the government has been adjusting policies since last year to cushion external shocks. Domestic demand and infrastructure spending remain the primary anchors of growth amid global pressures.
