RRI.CO.ID, Jakarta – Vice Minister of Finance, Juda Agung, emphasized the importance of synergy between fiscal and monetary policies to maintain Indonesia’s economic stability amid global uncertainty. He made the statement at the 20th Bulletin of Monetary Economics and Banking (BMEB) International Conference in Bali on Friday, July 31, 2026.

The integration of fiscal policy instruments is seen as effective in mitigating the impact of interest rate adjustments on domestic economic growth. Juda noted that monetary policy, as the primary line of defense, must be balanced with targeted fiscal measures.

“This is the policy coordination we need to use as a framework in the current situation,” he noted.

The government continues to optimize the role of the state budget to maintain public purchasing power through energy subsidies and food inflation control. Efforts to improve the efficiency of government spending are also aimed at supporting growth while maintaining the fiscal deficit within safe limits.

He explained, “The goal of fiscal policy in the current situation is to strike a balance between supporting growth and, at the same time, maintaining fiscal sustainability to keep our fiscal deficit below 3 percent.”

Inter-agency cooperation among the institutions comprising the Financial System Stability Committee (KSSK) serves as the primary framework for testing the resilience of the national financial sector. This collaboration has proven to drive Indonesia’s economic growth to 5.61 percent in the first quarter of 2026.

“This is an example of how monetary, fiscal, and financial sector policies can coordinate with one another in managing the economy amid global economic challenges, particularly in maintaining stability,” the Vice Minister said.