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Indonesia budget plans target a smaller deficit in 2027
Standard Chartered expects Indonesia’s 2027 deficit to land at 2.9% of GDP, citing revenue assumptions and possible tax shortfalls despite a projected reduction from 2026.
Standard Chartered’s Aldian Taloputra assessed Indonesia’s 2027 fiscal plans, saying the government targets a deficit of 2.4% of GDP, down from the 2.9% level targeted for 2026.
The bank, however, maintained its own forecast of a 2.9% deficit for 2027, pointing to ambitious revenue assumptions and potential tax shortfalls as key risks.
Taloputra said the narrowing of the deficit would still keep it below the 3% threshold. The 2027 budget also emphasizes strengthening sectors including food, energy, and education, alongside defense.
The plan includes restructuring state-owned enterprise assets and attracting private investment in priority downstream and renewable areas, according to the assessment cited by FXStreet.