A well-intentioned budget
Facing tumbling approval ratings and economic pushback, President Prabowo Subianto pivots to fiscal discipline in his latest budget—but delivering on his ambitious promises will be the real test.
President Prabowo Subianto aims to boost his budget's credibility amid declining public support and economic criticism by emphasizing fiscal responsibility in his latest budget proposal. The administration has slashed its projected budget deficit from 2.85 percent of GDP to 2.4 percent, a move that directly counteracts market concerns about overzealous government spending that could breach Indonesia's legally mandated 3 percent ceiling.
President Subianto's ambitious plans include optimizing state-owned enterprises through public-private partnerships, launching an electric motorcycle industry, and generating 100 gigawatts of solar power to propel the nation's energy transition. However, the government has curtailed its free nutritious meal program, reducing its allocation to Rp 240 trillion (US$13.5 billion) from the initially proposed Rp 335 trillion, due to backlash from public corruption allegations and food poisoning incidents.
Financial markets responded positively to the budget announcement, with the rupiah strengthening and the Jakarta Composite Index rising. Nevertheless, the real test for the administration lies in its ability to uphold fiscal discipline and successfully implement these strategic priorities in a turbulent global environment.
Written by urgent.news from The Jakarta Post Academia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- A well-intentioned budget thejakartapost.com
