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Jakarta Post

Why Indonesia needs independent fiscal council

  • Dwinanda Ardhi Swasono

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PREMIUM
Jakarta   /   Tue, April 16, 2019   /  09:25 am
Why Indonesia needs independent fiscal council Illustration of economic growth (Shutterstock/Number1411)

Fiscal credibility is one of the most important fundamentals of macroeconomic policy. For the Indonesian government, maintaining fiscal credibility becomes more important as Indonesia plays a more significant role in the global economy. The country is now the biggest economy in Southeast Asia and a member of the G20. According to a PricewaterhouseCoopers Report, Indonesia’s economy is projected to be the fifth-largest in the world by 2030, with gross domestic product (GDP) at about US$5.4 trillion. The bright future doesn’t come without challenges. Under President Joko “Jokowi” Widodo’s administration, the government is committed to implementing an expansive fiscal policy. For example, the government wants to be more focused and spend more money on infrastructure. The government, then, needs to borrow money from other countries or international orga...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.