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Jokowi Set to Unveil Strict Budget Plans Amid Soaring Subsidies

  • Indonesia president pledges return to 3% legal deficit limit
  • Energy subsidy set to soar beyond spending target this year
Joko Widodo

Joko Widodo

Photographer: Sonny Tumbelaka/AFP/Getty Images

After three years of fighting the pandemic, President Joko Widodo is determined to fulfill his promise of restoring fiscal discipline while sustaining growth and protecting Southeast Asia’s largest economy from surging inflation. 

Jokowi, as the Indonesian president is known, will deliver his annual budget speech on Tuesday that will outline how his government intends to bring fiscal consolidation back on track in the face of swelling state spending for energy subsidies and infrastructure next year, ahead of his final term in 2024.