Speaking at Halim Perdanakusuma Air Force Base in Jakarta on Monday, Purbaya said the government's debt remained around 40 percent of gross domestic product (GDP), while many European countries had debt levels nearing 100 percent of GDP.
"They should look at the policies of European countries, how large their deficits are and how much debt they have. Most are approaching 100 percent of GDP. We are still at 40 percent of GDP. We are still in good shape, so The Economist should praise us," Purbaya said.
Indonesia has maintained its fiscal deficit below the legal ceiling of 3 percent of GDP. Purbaya said the Indonesian economy remained in good condition and is not facing serious problems.
"So, there is no problem. Even now we are calculating what the deficit will be," he added.
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Purbaya also defended the government’s priority spending programmes, including the Free Nutritious Meals (MBG) initiative and the Red and White Village Cooperatives initiative, saying the government had carefully calculated the implementation
According to him, the budget allocations for each program are appropriate and should not raise concerns about disrupting national economic stability.
"We have calculated everything carefully, including for the Free Nutritious Meals programme and other programmes, without disrupting other development programmes. We are managing it properly, including subsidies and all related spending," Purbaya stated.
The Economist criticized some government policies that it viewed as posing risks to Indonesia’s economic stability and democracy.
Among the concerns raised were what it described as excessive government spending that could strain state finances, risks of weakening fiscal discipline due to costly priority programmes, and growing state intervention in economic activity.
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Translator: Maria Galuh, Kuntum Khaira
Editor: Fransiska Ninditya
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