Prabowo turns down IMF loan and assures Indonesia's fiscal stability

Jakarta (ANTARA) - President Prabowo Subianto assured that Indonesia's economy remains resilient and capable of funding its own development initiatives, confirming that the country recently turned down a loan offer from the International Monetary Fund (IMF).

Speaking at the closing of the 35th Nahdlatul Ulama (NU) Congress at the Bahrul Ulum Islamic Boarding School in East Java on Monday, Prabowo emphasized that the government prioritizes investment and strict fiscal discipline over unnecessary foreign debt.

"A few months ago, our Finance Minister in Washington, D.C., was offered a loan from the IMF, and we declined," Prabowo told attendees.

"Thank you, but Indonesia can still do without an IMF loan," he emphasized.

Prabowo explained that while the administration remains open to foreign investment, any borrowing would only be considered under favorable terms with minimal interest rates.

"We are currently trying not to borrow too much money from anywhere. We can invite investment. If we borrow money, we want to borrow money with the lowest possible interest rates," he said.

The President noted that the core focus of the government's economic strategy is lifting millions of citizens out of poverty and boosting public welfare through careful budgetary management.

"We must be brave, and I have calculated it carefully, down to every single rupiah. I am confident and believe we will succeed," Prabowo added.

The loan offer was extended during an April bilateral meeting in Washington between Finance Minister Purbaya Yudhi Sadewa and IMF Managing Director Kristalina Georgieva. While the IMF outlined plans to make financial support available to member nations navigating geopolitical tensions and energy market volatility, Indonesian officials determined that the safety net was unnecessary.

Finance Minister Purbaya confirmed that Indonesia's fiscal reserves remain robust, backed by a budgetary buffer of Rp420 trillion (approximately US$26 billion).

"Indonesia does not need aid because our budget is quite good and we still have a fairly large buffer," Purbaya said, reassuring markets that the country's current fiscal cushion is sufficient to absorb potential global shocks.

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