Deputy Minister: Global Challenges Require Fiscal & Financial Strength

JAKARTA, DDTCNews - The Ministry of Finance (MoF) has affirmed that fiscal policy will remain capable of driving economic growth and improving public welfare amid various domestic and global challenges.

Deputy Minister of Finance, Juda Agung, noted several challenges requiring vigilance, including political tensions that could disrupt oil supply chains and drive up energy prices, inflation, rising global interest rates and exchange rate dynamics.

"Fiscal strategy must remain adaptive, prudent and growth-oriented, protecting the current economy whilst preserving fiscal sustainability in the future," he said on Monday (28/9/2026).

In line with this, Juda stated that the state budget as a fiscal instrument must continue to function as a shock absorber in facing various challenges whilst maintaining economic growth momentum.

"The APBN must be able to protect the public, support productive activity and respond to emerging risks whilst maintaining fiscal discipline, credibility and sustainability," he said.

Beyond fiscal policy, Juda considered the strengthening of financial sector resilience to be equally important. In his view, financial sector resilience is one of the foundations of economic growth in the face of various global shocks.

To reinforce that resilience, Juda continued, coordination of fiscal, monetary, macroprudential and financial sector policies is required.

Juda added that the financial system must remain stable, efficient, and increasingly inclusive in order to provide diverse sources of financing and channel stated capital towards productive activities.

"Resilience does not imply the absence of shocks. Resilience is our ability to absorb shocks, adapt to change and keep moving forward without losing credibility and public trust," Juda concluded. (dik)