Indonesia’s new Finance Minister Suahasil Nazara stated he will focus solely on managing the state budget and keeping the deficit within the legal limit of 3% of gross domestic product. In his first foreign media interview, he signaled a departure from his predecessor Purbaya Yudhi Sadewa, who had sought nearly $7 billion in dividends from the Danantara sovereign wealth fund. Suahasil clarified that Danantara dividends are not included in the 2026 or 2027 state budgets.
He declined to comment on Bank Indonesia’s interest-rate moves, emphasizing that each institution has its own mandate. Suahasil expressed comfort with Bank Indonesia Governor Destry Damayanti’s actions regarding the rupiah trading near 18,000 per dollar. He noted that Indonesia has room for another global bond sale, having last sold $3.45 billion of dollar- and euro-denominated debt in May.
Suahasil described Danantara as a sovereign entity working in close coordination with the Finance Ministry, while acknowledging concerns from Fitch Ratings and Moody’s Ratings regarding fiscal risks outside the headline budget deficit.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing