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View all search resultsThe finance minister is taking the precaution to verify local administrations' claims about a funding squeeze as regional transfers fell 11.2 percent yoy to Rp 357.4 trillion (US$20 billion) as of end June.
President Prabowo’s visionary fiscal address signals a bold shift toward a state-driven, developmental state model aimed at unleashing Indonesia’s economic potential—but its ultimate success hinges entirely on dismantling the entrenched governance and bureaucratic failures of the past.
Finance Minister Purbaya has pivoted toward an aggressive, pro-growth fiscal strategy that breaks from years of cautious discipline. However, using reserve cash and central bank surpluses to fund this vision may jeopardize Indonesia’s long-term institutional stability and debt credibility.
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