February 19, 2026 | 04:38 pm
TEMPO.CO, Jakarta - In an upbeat tone, Finance Minister Purbaya Yudhi Sadewa boasted that he had managed to improve the economy after last year's slowdown. "The policies we implemented have successfully reversed the direction of the economy," he told members of House of Representatives Commission XI overseeing finance and banking in Jakarta on Wednesday, February 4, 2026.
Purbaya cited a number of indicators he said showed improvement in the second half of 2025. For instance, after weakening through September, consumer confidence rose from October. He also claimed retail and motor vehicle sales grew by double digits toward year-end. Manufacturing activity, he said, returned to expansionary territory, reflected in the Purchasing Managers' Index (PMI) remaining above 50.
He showcased early 2026 state revenue performance as a signal that the recovery was continuing. As of January 31, 2026, state revenue reached Rp172.7 trillion, up 9.8 percent year-on-year. Tax revenue rose by more than 30 percent compared with the same period last year. "This shows that a reversal in the economic direction really does appear to be underway," he said confidently.
The former chairman of the Deposit Insurance Corporation said the improvement was inseparable from government measures to maintain purchasing power during the slowdown. Rather than raising taxes, he explained, the government accelerated spending and channeled around Rp200 trillion from government accounts at the central bank to commercial banks to expand liquidity and encourage lending. The policy was believed to boost money supply and credit growth toward year-end. The government also held back several tax rate adjustments to avoid pressuring consumption.
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