Prabowo Pledges 2.4% Budget Deficit, Strong Growth in 2027

Indonesia’s President Prabowo Subianto plans to narrow the budget deficit next year to rebuild state finances after heavy spending tied to his campaign pledges. The direction of fiscal consolidation is credit-relevant, but the lack of specific deficit or spending figures keeps the near-term market impact moderate.

Analysis

Indonesia’s President Prabowo Subianto plans to narrow the budget deficit next year to rebuild state finances after heavy spending tied to his campaign pledges. The direction of fiscal consolidation is credit-relevant, but the lack of specific deficit or spending figures keeps the near-term market impact moderate.