Strong domestic drivers, including consumer spending, investment, manufacturing and services, continue to support Indonesia’s economy while at the same time fiscal discipline remains the anchor of the country’s policy credibility, a top finance official has said.“The 3 percent deficit ceiling is not only a fiscal rule, but a signal of Indonesia’s commitment to prudent and sustainable economic management,” Second Deputy Finance Minister Suahasil Nazara said, in a press release issued by UBS on Tuesday.
“Even amid global volatility, Indonesia’s government bond markets have remained resilient, supported by policy credibility and a stable domestic investor base.”
Nazara was speaking at the UBS Asian Investment Conference held across Singapore and Hong Kong on May 29-30, where he shared how Indonesia is charting its path forward in light of shifting trade dynamics in the current geopolitical environment.
“The state budget will continue to act as a shock absorber, protecting purchasing power, maintaining macroeconomic stability,” he added.
The rupiah traded at 17,816 against the United States dollar during the conference. The Indonesia Stock Exchange (IDX) Composite index stood at 6,180.80 at the end of trading on May 29.
