Indonesian Finance Minister Addresses International Criticism Over Fund Transfer

Clarification on Financial Management

Finance Minister Purbaya Yudhi Sadewa has responded to international criticism regarding a significant financial transaction that was misinterpreted by foreign media. The controversy began when The Economist suggested that the minister had depleted Indonesia's emergency funds by transferring Rp 200 trillion plus Rp 76 trillion from Bank Indonesia to commercial banks.

Actual Purpose of Fund Transfer

Purbaya clarified during the Financial Forum 2025 at the Indonesia Stock Exchange that the transferred funds were not spent but merely reallocated to be managed by commercial banks for distribution to the public through credit facilities. The minister emphasized that this move was part of normal financial management rather than an extraordinary expenditure.

Implications for Financial Sector

This clarification is crucial as it addresses concerns about Indonesia's financial management practices and its ability to manage emergency funds. The transfer, while controversial, appears to be a strategic financial maneuver aimed at enhancing liquidity and potentially stimulating economic activity through increased lending.