Tax policy held back, Purbaya focuses on restoring the national economy.

Tax policy has become the main focus in the statement by Finance Minister Purbaya Yudhi Sadewa. In the latest interview video, he explains the reasons why the government did not raise taxes amid a fairly deep economic slowdown. Purbaya regards that step as important for maintaining stability and supporting the recovery of the national economy that is currently under pressure.

Purbaya said that since he took office as State Treasurer, Indonesia's economy had already been in a phase of slowdown. This condition is aggravated by the previous fiscal policy, which was deemed to be misdirected. According to him, the policy tends to follow the economic downturn rather than provide a stimulus for recovery.

Government's Strategy to Face the Economic Slowdown

In his presentation, Purbaya emphasizes the importance of a countercyclical approach. In other words, when the economy is weakening, government policies should instead drive growth and recovery. He criticized the policy in the previous period that was deemed procyclical because it raised taxes when the economy was in a downturn.

Ineffective tax policy

Purbaya explains that raising taxes during a sluggish economy only worsens the situation. The burden on society and business actors has increased, purchasing power has weakened, and the wheels of the economy have slowed further. "Procyclical fiscal policy does not benefit conditions like this," he said.

He emphasized that the current government needs to adjust its policy direction to be more accurate and in line with on-the-ground conditions. The focus is on creating a balance between state revenue and the community's economic capacity.

Measured Recovery Steps

As part of the new strategy, Purbaya ensures that fiscal policy will be focused on restoring market confidence. The government also strengthens the quality of the management of the State Budget (APBN). He says that every rupiah spent must have a tangible impact on economic growth and public welfare.

Purbaya added that budget efficiency is the key to making government spending more productive. They promised to ensure that the allocation of government funds is well-targeted, for both social programs and infrastructure that can accelerate the economic recovery.

Dialogue with INDEF Economist

In a discussion with INDEF's Senior Economist, Aviliani, Purbaya revealed that the government is currently making efforts to realign the direction of economic policy to be more in line with the real conditions on the ground. He assesses that strong fiscal policy support is very important so that Indonesia is not trapped in a protracted cycle of weakness.

Fiscal Synchronization and On-the-Ground Reality

According to Purbaya, the alignment of policy between fiscal and the economic conditions on the ground has become the main challenge. Many of the previous policies did not reflect the needs of society, especially the productive sector. He assesses that there is a need for reform so that fiscal policy truly becomes a driving instrument, not a hindrance.

In that dialogue, Aviliani emphasizes the importance of building public trust and the business actors' confidence in the direction of government policy. He believes that the Finance Minister's cautious stance in not raising taxes is a rational and relevant step to the current situation.

Focus on Market Confidence

Purbaya also highlighted that one of the government's current priorities is to maintain market confidence. He said that financial stability and credible fiscal policy can create a conducive investment climate. "We need to ensure that the policy adopted truly supports recovery," he said firmly.

In addition, Purbaya notes the importance of transparency in the management of public finances. According to him, the public must see that every policy taken has a solid data basis and strong economic considerations, not merely political decisions.

Impact on the business world

The policy of not increasing taxes is positively welcomed by business actors. Many observers believe that this step provides room for the industrial sector to recover without additional fiscal burden.

Reaction of Economic Agents

The business community views the Finance Minister's decision as a positive signal that the government understands the real conditions on the ground. By delaying tax increases, companies have the opportunity to reorganize their cash flow, restore production, and expand employment opportunities.

On the other hand, some analysts warn that this move must be balanced with a strategy to increase government revenue from other sectors, such as spending efficiency and tax digitization. They assess that, without structural reform, loose fiscal policy could curb the budget deficit.

Maintaining Fiscal Balance

Purbaya responded to those concerns by saying that the government is preparing more efficient and results-based policies. Every program will be evaluated based on its impact on the growth and welfare of society.

It also ensures that transparency and accountability remain the main pillars in the management of state finances. The government will strengthen oversight of expenditures to prevent leaks and waste.

Towards Sustainable Recovery

Purbaya assesses that the current policy focus is to ensure that the economic recovery proceeds in a stable and inclusive manner. He emphasizes the importance of policies that favor the productive sector and also promote innovation and the competitiveness of the national industry.

The government's cautious approach to tax policy is expected to help sustain the momentum of post-pandemic recovery and strengthen the long-term foundations of the economy.

Ultimately, fiscal policy is not only about numbers and deficits, but about direction and sensitivity to the economic reality of society.

Purbaya concluded with a message that Indonesia's economic success is not only determined by macroeconomic policies, but also by the public's trust in the government. He or she invites all parties to collaborate in building a stronger, more inclusive, and resilient economy.

In conclusion, Purbaya Yudhi Sadewa's decision to refrain from implementing the tax policy reflects a realistic and recovery-oriented approach. With an adaptive fiscal strategy, the government seeks to stabilize the economy and pave the way for new growth. Readers can follow the latest fiscal policy updates only on Insemination To obtain credible and in-depth economic analysis.