Indonesia seeks to curb budget deficit

Indonesian Finance Minister Sri Mulyani Indrawati has forecast that Indonesia’s 2020 state budget deficit will potentially widen in the face of current global uncertainties.

28, Feb. 2020

Minister of Finance Sri Mulyani Indrawati at the Ritz Carlton Hotel in Jakarta on Feb. 26, 2020. (ANTARA)
Minister of Finance Sri Mulyani Indrawati at the Ritz Carlton Hotel in Jakarta on Feb. 26, 2020. (ANTARA)

JAKARTA, VNA - Indonesian Finance Minister Sri Mulyani Indrawati has forecast that Indonesia’s 2020 state budget deficit will potentially widen in the face of current global uncertainties.

She said at a press conference on February 26 that if the government tightens its belt, a pro-cyclical situation would arise, and the economy would nosedive.

Due to external pressure on the domestic economy, the government must prepare a countercyclical policy to maintain economic growth, she said.

She added that the government will offset the widening budget deficit by issuing new debt securities due in three decades, with an interest rate of three percent. - VNA