Prabowo Says Indonesia Rejected IMF Loan Offer

August 31, 2026 | 01:08 pm

TEMPO.CO, Jakarta - President Prabowo Subianto said Indonesia had rejected an offer of a loan from the International Monetary Fund (IMF), saying the country could continue its development without relying on borrowing from the international lender.

Prabowo made the remarks in a speech at the closing of the 35th Congress of Nahdlatul Ulama (NU) at Bahrul Ulum Islamic Boarding School in Jombang, East Java, on Monday, August 31, 2026.

“I was surprised a few months ago when our Finance Minister was offered an IMF loan in Washington, D.C. We turned it down. Thank you, but Indonesia can still manage without an IMF loan,” Prabowo said.

The president said the government remained open to investment but was seeking to limit its reliance on borrowing.

“We are now trying not to borrow too much from various sources. Investment is welcome. But if we borrow money, we want loans with the lowest possible interest rates,” he said.

Prabowo Says Poverty Reduction Is Key Focus

Prabowo said the government's broader transformation strategy was focused on improving public welfare and lifting as many Indonesians as possible out of poverty.

“We have to be brave, and I have calculated it carefully, down to every rupiah. I have calculated it, and I am confident and believe that we will succeed,” he said.

He said the government was targeting millions of Indonesians to move out of poverty and claimed that progress toward that goal had already begun during the first two years of his administration.

Indonesia Says It Has Sufficient Fiscal Buffer

The statement came after Finance Minister Purbaya Yudhi Sadewa held a meeting with IMF Managing Director Kristalina Georgieva in Washington, D.C., in mid-April.

At the meeting, Purbaya said Indonesia had sufficient fiscal space to withstand ongoing global uncertainty, including risks stemming from geopolitical tensions and energy price movements.

The IMF has said it does not have the authority to reduce global uncertainty but has prepared financial support for countries that may need assistance.

“Of course, Indonesia does not need it because our budget is in fairly good shape, and we still have a large enough buffer of Rp420 trillion,” Purbaya said.

Prabowo's comments underscore his administration's emphasis on maintaining fiscal independence while encouraging investment to support economic development.

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