Economics

Indonesia Aims to Shrink 2023 Budget Gap as Covid Risks Wane

  • Jokowi targets to return fiscal deficit to below 3% of GDP
  • GDP growth seen reaching pre-pandemic levels from this year
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Indonesia will make good on its pledge to return the budget deficit below a mandated 3% of gross domestic product next year as pressures from the pandemic ease.

Southeast Asia’s largest economy will reduce its 2023 borrowing plans by 8% to 696.3 trillion rupiah ($47.2 billion), its lowest since 2019, amid cuts to its health care and social protection budgets, according to the annual budget presented by President Joko Widodo in parliament on Tuesday.