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Jakarta Post

State budget deficit may pass 3 percent ceiling if situation gets worse, analyst warns

  • Marchio Irfan Gorbiano and Adrian Wail Akhlas

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, March 10, 2020   /  02:23 pm
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Medical workers are preparing isolation chambers for ship crew members suspected of being infected with the COVID-19 coronavirus at Panjang Port in Bandar Lampung on Jan. 29. (Antara/Ardiansyah)

Indonesia's  state budget deficit may surpass the 3 percent ceiling this year as the impact of the COVID-19 outbreak and a sharp drop in oil prices could further worsen Indonesia’s economic outlook, a senior economist is warning. The University of Indonesia’s senior economist, Faisal Basri, said the current virus crisis would have a deeper effect on the country’s economy than the financial crisis of 2008 and would further drag down the country’s economic growth. “During the 2008 global financial crisis, the government took several economic decisions. This time, economic policy is blunt to address the virus crisis,” Faisal told The Jakarta Post on Friday. He urged the government to issue a presidential regulation (Perpres) to allow a deficit of more than 3 percent. He feared the deficit would further widen from the government’s proj...