Indonesia

Indonesia: Fiscal Dynamics On A Solid Footing

Macroeconomics
125 Views, 17 Jan 2022 20:44
EXECUTIVE SUMMARY
  • For 2021, the fiscal deficit is projected at 4.65% of GDP, or a full percentage point lower than the budgeted 5.7% of GDP, thanks to heftier commodity royalties.
  • An upside surprise to growth and inflation, and looming tax adjustments from April 2022 will guide the fiscal deficit down with revenues on a bounce.
  • Risks are twofold. First, parliament could backtrack on fiscal commitments. Second, there is a salient risk of an disorderly evolution of financial conditions because of BI's debt purchases.
detail (7-minute read)
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Nicholas Chia
Economist
Centennial Asia Advisors
Multi-AssetMacroeconomicsThematic (Sector/Industry)

Centennial Asia Advisors deliver timely and accurate economic and political analysis to investors, focused on anticipati... 

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