Finance Minister Pushes Back Against ‘Sell Indonesia’ Narrative
Jakarta. Finance Minister Purbaya Yudhi Sadewa has rejected the growing “sell Indonesia” narrative circulating among some global investors, arguing that the country’s economic fundamentals remain solid despite recent market turbulence.
Speaking after an inspection at Jakarta’s Tanjung Priok Port on Saturday, Purbaya said pessimistic views about Indonesia reflected a misunderstanding of the country’s economic conditions rather than the reality on the ground.
“The ‘sell Indonesia’ trend that I’ve been reading about is misguided. One of the writers probably does not really understand Indonesia’s actual situation,” Purbaya told reporters.
His remarks came in response to a recent Bloomberg report quoting George Boubouras, head of research at K2 Asset Management, who described “sell Indonesia” as “the big trade in Asia.” The hedge fund executive said his firm had exited all Indonesian investments in 2024 and currently has “zero exposure” to the country.
According to the report, Indonesia’s benchmark stock index has fallen 36% from its record high reached five months ago, making it one of the worst-performing major equity markets this year, while the rupiah has weakened more than 7% against the US dollar.
Purbaya insisted that the government is moving proactively to reassure financial markets by increasing transparency over the state budget and fiscal conditions. On Friday, the Finance Ministry brought forward its regular state budget monthly briefing, which provides updates on state finances.
“That is why we accelerated the state budget briefing yesterday, to show the market that our fiscal position is sound and that the economy remains quite strong,” he said. “Over time, I believe this negative sentiment will fade.”
The finance minister urged investors to look beyond short-term market sentiment and examine Indonesia’s underlying economic indicators more carefully.
“I ask investors to look at the details and understand the economy as it really is. What I can say today is that our fiscal condition is good and our economy is in good shape,” he said.
Purbaya also expressed confidence that President Prabowo Subianto’s administration retains the capacity to carry out its development agenda and maintain macroeconomic stability despite heightened global uncertainty.
Indonesia has faced mounting pressure in recent months from a stronger US dollar, shifting global capital flows, and concerns over domestic fiscal spending. However, government officials have repeatedly maintained that the country’s public finances remain healthy, supported by prudent debt management and resilient economic growth.
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