Economics
Indonesia Pushes Budget Deficit to 5%, Cuts Taxes Amid Virus
- Budget deficit seen at 5.07% as Jokowi unveils more stimulus
- Stimulus to cushion impact of pandemic to total $25 billion
Motorists commute on a usually busy road in downtown Jakarta.
Photographer: Bay Ismoyo/AFP via Getty Images
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Indonesia cut corporate taxes and temporarily scrapped a budget deficit cap introduced after the Asian financial crisis to help shield the economy from the coronavirus outbreak.
The government will allocate 405.1 trillion rupiah ($24.8 billion) to fight the pandemic, pushing the budget deficit to 5.07% of gross domestic product this year, President Joko Widodo said in a televised speech Tuesday. The corporate tax rate will be lowered this year to 22% from 25%, he said.