The Indonesian government has decided to decline a loan offer from the International Monetary Fund (IMF) and the World Bank amounting to between US$25 billion and US$30 billion, amid rising global uncertainty driven by geopolitical conflicts.

This amount is equivalent to approximately Rp428.5 trillion to Rp514.2 trillion.

Finance Minister Purbaya Yudhi Sadewa stated that Indonesia’s current fiscal condition remains strong, making additional borrowing from international institutions unnecessary at this time.

“The US$25–30 billion facility is available if needed and is typically used by countries that require it. However, I indicated that Indonesia does not currently need it because we still have our own reserves,” Purbaya told reporters at the Ministry of Finance in Jakarta on Tuesday (April 21, 2026).

He explained that the government still has a fiscal buffer in the form of a budget surplus balance (SAL), which stands at around Rp420 trillion, or nearly US$25 billion.

This reserve is considered sufficient to maintain financial stability without the need to take on new debt.

According to Purbaya, the decision is part of a broader strategy to maintain fiscal independence while ensuring that debt levels remain within safe limits amid global pressures.

“We still have available capacity, so we are using existing resources first. If there is a shortfall later, then we can seek additional funding, but for now it is sufficient,” he said.

He emphasized that every fiscal policy is carefully designed with long-term impacts in mind, rather than being a short-term reaction to global developments.

“In essence, our policies are well-planned and based on calculated impacts, not mere assumptions,” he added.

Purbaya also revealed that the IMF and World Bank showed a somewhat unusual reaction when Indonesia rejected the loan offer.

He noted that the refusal meant the lenders would miss out on potential interest income.

“They looked displeased because the loan would not go through, meaning no interest earnings,” he remarked.

The loan offer was made during Purbaya’s visit to Washington, D.C., United States, from April 13 to 17, 2026.

During the meeting, the IMF and World Bank proposed financing facilities as a precautionary measure against the impact of global conflicts, including tensions involving the United States, Israel, and Iran.

Nevertheless, the Indonesian government chose to rely on its domestic financial strength first, given its still-stable fiscal condition.

This move reflects the government’s effort to maintain fiscal discipline amid global uncertainty, without relying on external financing that could increase future interest burdens.