News Summary:
- Finance Minister Purbaya Yudhi Sadewa issued a statement during a Commission XI DPR RI meeting regarding the government’s strategy to reverse the negative trend in money circulation within society.
- The Finance Minister touched upon Bank Indonesia’s role, re-emphasizing the necessity of encouraging liquidity to flow into the real sector, rather than merely circulating within the banking system.
- Purbaya sought support from Commission XI to accelerate monetary measures, aiming to synchronize the efforts of the two primary economic engines: fiscal and monetary policy.
In the midst of Indonesia’s economy steadily striving towards recovery, Finance Minister Purbaya Yudhi Sadewa delivered a significant statement that resonated during a meeting of the DPR RI’s Commission XI. The minister underscored that national economic recovery has yet to accelerate as he had anticipated, despite the strategies implemented thus far. He attributed this slower-than-desired progress to the underperformance of a crucial economic mechanism: monetary policy.
According to Purbaya, a major impediment hindering economic momentum is the substantial pool of funds, intended to stimulate money circulation, that remains static within the central bank. He conveyed this critical observation during a hearing with Commission XI of the DPR RI on Thursday, November 28, 2025. His remarks were part of an explanation regarding the government’s strategy to counteract the declining trend in societal money circulation observed over recent months.
Highlighting the pivotal role of Bank Indonesia, Purbaya reiterated the pressing need to actively encourage liquidity to flow into the real sector of the economy, preventing it from solely rotating within banking circles. As reported by Kompas.com, Purbaya specifically mentioned the considerable funds held by the central bank during the Thursday, November 28, 2025 session. “Money in the central bank is still abundant; they absorbed Rp 1,000 trillion from banks. If it could be helped even a little, it would be even better. Try to knock on the door a bit so we can move forward together,” he urged during the hearing.
Purbaya acknowledged that while the weakening trend in money circulation has shown signs of improvement in recent months, monetary stimulus has not yet provided sufficient impetus. Consequently, fiscal policy continues to shoulder the heaviest burden in sustaining economic activity and growth. The Finance Minister pointed out that the central bank possesses considerable scope to release liquidity without triggering excessive inflation.
Therefore, Purbaya called upon Commission XI to lend its support, emphasizing the urgency of accelerating monetary measures. This proactive approach is essential for achieving a crucial synchronization between the nation’s two primary economic engines: fiscal and monetary policies. He firmly believes that without the harmonious alignment of these two critical policy frameworks, economic recovery will remain incomplete, despite the myriad challenges that lie ahead.
Part of this article is quoted from Kompas.com (TribunTrends.com).
Summary
Finance Minister Purbaya Yudhi Sadewa stated during a Commission XI DPR RI meeting that Indonesia’s economic recovery is not accelerating as anticipated, primarily due to the underperformance of monetary policy. He highlighted that a significant Rp 1,000 trillion in funds, absorbed from banks, remains idle at Bank Indonesia, hindering the desired money circulation. Purbaya emphasized the critical need for this liquidity to flow into the real sector of the economy, rather than merely circulating within the banking system.
The Minister urged Bank Indonesia to proactively release these funds, asserting that the central bank possesses considerable scope to do so without triggering excessive inflation. He sought support from Commission XI to accelerate monetary measures, aiming for a crucial synchronization between fiscal and monetary policies. Purbaya believes that aligning these two primary economic engines is essential for achieving a complete national economic recovery.
