Martin Bagya Kertiyasa, Theressia Silalahi, Jakarta – Newly appointed Finance Minister Suahasil Nazara said President Prabowo Subianto has instructed him to protect the health and credibility of Indonesia's state finances so the state budget can continue to support the government's priority programs.
Suahasil said Prabowo gave him the instruction after appointing him finance minister on Monday, replacing Purbaya Yudhi Sadewa in a cabinet reshuffle.
"The president's specific instruction is to protect state finances. That means maintaining their health and credibility," Suahasil told reporters after his inauguration.
He said the state budget, as part of the country's overall finances, must remain both healthy and credible to provide a strong foundation for government fiscal policy and economic growth.
"The state budget must be able to carry out the government's priority programs. Therefore, the budget must be healthy. Besides being healthy, it must also be credible. The state budget must be trusted," Suahasil said.
Suahasil said the Finance Ministry would continue its existing work to maintain fiscal health while ensuring the state budget supports economic growth and stability.
"We will continue the work that the Finance Ministry has been doing very hard to maintain state finances and ensure the state budget can support growth and truly stabilize the Indonesian economy," he said.
Prabowo appointed Suahasil to replace Purbaya for the remainder of the 2024-2029 government term.
Suahasil Nazara's challenge is to balance state spending with fiscal health. Indonesia's budget deficit stood at around 0.9% of gross domestic product through August 2026, broadly unchanged from July when the deficit reached Rp235.6 trillion ($14.8 billion), or 0.91% of GDP.
The government expects the full-year 2026 deficit to approach 2.85% of GDP as it seeks to maintain economic stimulus. The projected deficit remains below the 3% legal ceiling.
Suahasil takes over the Finance Ministry as the government prepares to implement its 2027 state budget, which targets economic growth of 6%.