Indonesia to Review Law That Sets Budget Deficit, Debt Caps

Newly appointed Finance Minister Purbaya Yudhi Sadewa has pledged to accelerate economic growth.

Photographer: Rosa Panggabean/Bloomberg

Indonesian lawmakers will review a law that sets strict limits on the budget deficit and overall debt levels next year, as President Prabowo Subianto pushes to accelerate growth in Southeast Asia’s largest economy.

The State Finance Law, passed in the wake of the 1998 Asian financial crisis, is among 67 priorities for a new parliamentary session starting in January, according to an official list released Friday. The legislation caps the budget deficit at 3% of gross domestic product and overall debt at 60% of GDP — long-standing markers of fiscal discipline closely tracked by investors.