Indonesia declines IMF loan, cites strong fiscal position

Jakarta (ANTARA) - Indonesia declined an International Monetary Fund (IMF) loan offer worth between US$20 billion and US$30 billion after assessing that the country's economic fundamentals remained strong, Finance Ministry officials said.

The financing offer was made to Finance Minister Purbaya Yudhi Sadewa during the IMF-World Bank Spring Meetings in Washington, D.C., on April 13-17.

Acting Director General of Financial Sector Stability and Development at the Finance Ministry Herman Saheruddin said the IMF financing instrument is designed to help countries deal with risks and emergency conditions.

"By nature, the IMF views things from the risk perspective because its main product is financing to address risks," Herman told reporters in Jakarta on Thursday.

He said the minister believed Indonesia's economy remained strong enough that emergency financing was unnecessary.

"If we accepted that financing, it would have meant accepting financing intended for high-risk conditions. Our situation was still under control, our economy was growing strongly, so, with all due respect, we did not need emergency funding at that time," Herman said.

He added that the IMF's financing differs from that of other multilateral institutions.

According to Herman, financing from the Asian Infrastructure Investment Bank (AIIB) is generally project-based, while the World Bank offers a broader range of financing, including both development loans and risk mitigation facilities.

The IMF, meanwhile, focuses primarily on financing to help countries cope with economic shocks and emergency conditions.

Earlier, Finance Minister Purbaya said the IMF and the World Bank had prepared between US$20 billion and US$30 billion to support countries affected by global uncertainty, particularly due to the conflict in the Middle East.

"I told them I do not need a loan right now because we already have nearly US$25 billion in reserves," Purbaya said during a media briefing earlier this week.

He expressed appreciation for the financing offer but said Indonesia's fiscal position remained strong.

"They have US$25 billion for several countries. We have US$25 billion reserved for our own country. Therefore, our financial situation remains secure," he said.

Related news: AIIB's US$17 bln funding for Indonesia is regular loan: minister

Related news: ADB commits 2.5 billion US dollars in funding for Indonesia in 2025

Translator: Bayu Saputra, Yashinta Difa

Editor: Anton Santoso

Copyright © ANTARA 2026