Tommy Djiwandono confirms that Prabowo has no plans to extend RI’s debt to 50% of GDP

Jakarta –

Member of finance government group Prabowo-Gibran, Thomas Djiwandono or Tommy Djiwandono, has confirmed that the elected president for 2024-2029, Prabowo Subianto, wouldn’t improve the state’s debt ratio to 50 p.c of the gross home product (GDP). This assertion responded to beforehand circulated rumors.

Thomas expressed this query to Reuters in an interview revealed on Saturday, (15/6/2024)

“We’re not speaking a few debt-to-GDP goal in any respect. This isn’t an official coverage plan,” stated Thomas.

Thomas denied a Bloomberg report that stated these rumors had harmed the nation’s forex and Indonesia’s bond market. The rupiah fell 0.9 p.c and bond yields rose on Friday (14/6).

Thomas stated Prabowo had not but focused debt ranges. As well as, Prabowo will adhere to related authorized restrictions on fiscal metrics.

Final month, Prabowo, who will turn into the President of the Republic of Indonesia in October, stated that Indonesia should be ‘extra daring’ in financing growth and reaching the financial progress goal of 8 p.c . So it’s the nation with the most important financial system in Southeast Asia, but it surely has additionally repeatedly promised to stick to funds deficit limits.

“It is very important be aware, that’s the reason Prabowo and his formal group are speaking about fiscal prudence, as a result of it’s according to these ideas,” Thomas stated.

He additionally ensured that within the search between the manager group of Prabowo and the group of the Minister of Finance Sri Mulyani that the main target was on rising the earnings of the state, evaluate of state expenditure and offering funds house for essential packages.

Applications like this present free nutritious meals to kids, inside the limits of public finance legal guidelines. Thomas additionally stated that the funds deficit in 2025 will stay under 3 p.c of GDP.

(aik/fas)