Indonesia Latest: Jokowi Aims to Trim Budget Gap to 2.85% of GDP

Indonesia seeks to narrow next year’s budget deficit to below 3% of gross domestic product for the first time since 2019 as it balances the need to rein in the fiscal sector while supporting growth, President Joko Widodo said.

The fiscal gap is projected to drop to 2.85% of GDP in 2023 from an estimated shortfall equivalent to 3.92% of GDP in 2022 even as the government increases the allocation for subsidy by 4.4% to 297.2 trillion rupiah ($20.1 billion), said Jokowi, as the president is popularly known, in his annual budget speech to the parliament.