Critical Analysis of Purbaya Yudhi Sadewa’s Expansionary Fiscal Policy Risks and Governance

Abstract

The appointment of Purbaya Yudhi Sadewa as Indonesia's Finance Minister in late 2025 marked a significant philosophical transition from a conservative fiscal policy to an aggressive, expansionary model aimed at stimulating economic growth. This study critically analyzes the initial implementation of this policy package using a descriptive-analytical qualitative method based on secondary data from official government reports. The findings reveal a substantial gap between the ambitious pro-growth rhetoric and the slow realization of state budget absorption and tax revenue. Key initiatives, such as the "Quick Win" programs and the IDR 200 trillion liquidity injection into state-owned banks, face significant implementation challenges, including structural hurdles, weak credit demand, and potential risks of moral hazard and problematic governance. Although the debt management strategy shows continuity in its counter-cyclical prudence, incidents of operational discoordination between fiscal and monetary authorities have created market uncertainty. This study concludes that the policy's effectiveness is constrained by a disconnect between political breakthroughs and persistent structural realities.