Indonesia pledges fiscal discipline and investment push to lure foreign capital
Indonesia's finance minister said the government will keep the budget deficit under 3% of GDP and boost investment to meet a 6% growth target.
At a Deutsche Bank-hosted investor meeting in Bangkok, Indonesia's finance minister emphasized the government's resolve to keep the fiscal deficit under 3% of GDP and to prioritize development needs. The 2027 State Budget targets 6% economic growth, supported by a 7% increase in investment, with the sovereign wealth fund Danantara expected to play a strategic role alongside private investors. The Ministry of Finance's director general of financing and risk management detailed a three-step approach: reinforcing fiscal, monetary and financial credibility; maintaining market discipline and integrity; and expanding participation of domestic institutional and retail investors to create a more liquid and resilient market. These measures aim to build long-term investor trust and protect the economy from geopolitical and market volatility.
Why it matters
Indonesia's fiscal stance and investment drive will shape regional capital flows and affect global market confidence.
In this story
