Indonesia pledges deficit below 3 per cent of GDP
The Finance Ministry said the World Bank Group was ready to offer technical assistance for capital market expansion and natural resource downstreaming.
Indonesia has renewed its pledge to limit its budget deficit to less than 3 per cent of gross domestic product and keep its debt-to-GDP ratio under 60 per cent. Finance Minister Suahasil Nazara outlined the commitments during talks in Bangkok with Ajay Banga, president of the World Bank Group.
Suahasil said maintaining credibility underpinned Indonesia's economic strategy. He described fiscal policy as a means of supporting President Prabowo Subianto's priorities, including security of food and energy supplies, health and education, small and medium-sized enterprises, and natural resource downstreaming.
He also called for a deeper domestic financial sector and the creation of high-value jobs. Financial inclusion and financial deepening should be pursued together with macroeconomic stability, he said.
The Finance Ministry said the World Bank Group welcomed the fiscal framework and indicated it was ready to provide technical assistance. That support will target domestic capital market expansion and greater local value addition from natural resource downstreaming programmes.
The bilateral talks took place alongside discussions involving ASEAN finance officials and World Bank Group leaders. Suahasil said Indonesia's budget could support growth and public welfare through credible fiscal management.
