Jakarta. Indonesia’s newly appointed Finance Minister Purbaya Yudhi Sadewa sought to assure lawmakers on Wednesday that he is equipped to handle the country’s complex fiscal challenges, as he faced his first parliamentary hearing just two days after being sworn in.

Purbaya, a veteran economist, underlined his long-standing role in policymaking, noting that he had advised both former presidents Susilo Bambang Yudhoyono and Joko Widodo.

“Managing the economy is not something new for me. Please don’t take this as arrogance, but you need to know that I have to convince you,” Purbaya told legislators from Commission XI, which oversees finance and banking.

He projected that Indonesia’s economic recovery would remain strong into 2026, citing data from the Central Statistics Agency (BPS) showing that second-quarter growth reached 5.12 percent in 2025, an improvement from 4.87 percent in the previous quarter.

Still, Purbaya warned of external risks: “Current conditions are increasing fragmentation and protectionism, which disrupt supply chains, push up commodity prices, and put pressure on interest rates and the rupiah. We are working to anticipate and mitigate these risks as best as possible.”

Education Spending in the Spotlight
Much of the discussion, however, centered on education funding. Lawmakers reminded Purbaya of Indonesia’s constitutional mandate that 20 percent of the state budget must be allocated to education -- a provision enshrined in the 1945 Constitution to ensure long-term investment in human capital.

Deputy Commission XI Chair Dolfie Frederic Palit noted that in practice, the government has consistently fallen short. “On average, only 17 percent of spending goes to education. This year alone, if 3 percent again fails to reach the sector, it could amount to Rp 80 trillion ($4.9 billion),” he said.

Dolfie added that the shortfall comes at a time when state university tuition remains high, straining household budgets. “We want the 20 percent allocation to be fully absorbed for education, not just written into the budget,” he stressed.

The 2026 draft state budget sets education spending at Rp 757.9 trillion ($46.8 billion), with allocations boosted by new initiatives, including free nutritious meals for schoolchildren and additional resources for an education endowment fund.

Even so, some legislators criticized other budget priorities. Commission XI member Anna Mu’awanah questioned the proposed 300 percent increase in allowances for Finance Ministry staff, arguing that it would raise fiscal burdens without delivering clear benefits to the wider public.