Display mode (Doesn't show in master page preview)

15 Sep 2025

International Economy

Indonesian economy shifts direction from fiscal discipline to proactive stimulus, aiming for 8% GDP growth (Current Issue No.3601 Full Ed.)

คะแนนเฉลี่ย
  • Indonesia is shifting its economic policy direction to alleviate social pressures by appointing Mr. Purbaya Yudhi Sadewa to advance an economic stimulus of IDR 200 trillion, accounting for 0.9 percent of GDP, aimed at accelerating the provision of low-interest loans to farmers, cooperatives, villages, and low-income earners, to drive GDP growth to 8 percent. 
  • Fiscal and public debt risks are increasing, with the fiscal deficit potentially accelerating further amid unclear government revenue collection approaches and a large amount of pending expenditure. If populist policies continue to be pursued, public debt is likely to trend upward and undermine investor confidence. 
  • The markets have responded positively in the short term, but risks are rising. Although the Indonesian Rupiah has strengthened, and the Jakarta Composite Index (JCI) has recovered in response to the appointment of the new Finance Minister. There are lingering concerns that the government’s intervention in Bank Indonesia’s (BI) operations could put pressure on the currency and create vulnerabilities for financial stability in the longer term.

View full article


International Economy