Speaking after a meeting with the House of Representatives, Sadewa said the protest could have been avoided if fiscal and monetary policies had worked optimally to support economic activity.
He noted that government spending has been very slow and that the state budget funds stored in Bank Indonesia (BI) have not been utilized. According to him, this caused liquidity in the economy to become stuck in an undesirable situation.
“Since 2020, funds have been continuously drawn down until growth fell to zero by the end of 2024. What people felt was an economic slowdown, difficulties in the real sector, everything becoming hard, and then the tagline ‘Dark Indonesia’ emerged,” the minister explained.
There was some economic growth in early 2025, with a rate of 7 percent recorded in April. However, by August it had dropped back to zero.
“The slowdown occurred because liquidity was tight. It improved slightly, but before a full recovery could take place, the economy stalled again,” he said.
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Sadewa emphasized that his main focus going forward is to improve fiscal and monetary performance. Using his authority as minister, he plans to withdraw Rp200 trillion (around US$12.1 billion) of the government’s budget from BI.
He added that BI currently holds Rp425 trillion (around US$25.8 billion).
On the monetary side, the withdrawn funds will be directed toward bank liquidity. “Naturally, banks will find ways to channel the funds so they do not face high costs while also seeking better returns. The strategy is aimed at creating conditions where economic agents can grow,” he explained.
On the fiscal side, he said he will accelerate government spending to keep the economic cycle moving.
He will monitor ministries’ and agencies’ budget absorption and personally intervene if any program becomes stuck.
Sadewa expressed confidence that these two strategies can once again optimize fiscal and monetary performance simultaneously.
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Translator: Imamatul Silfia, Mecca Yumna
Editor: M Razi Rahman
Copyright © ANTARA 2025
